The rules for the administration of the Strategic Plan for Lithuanian Agriculture and Rural Development 2023-2027 have been amended, removing the requirement to insure assets purchased with support funds. Thus, applicants applying for the calls for proposals that will be published after this amendment to the administrative rules will no longer be obliged to do so, but it is important to be aware that in the event of damage or destruction of such assets, the beneficiary will be required to reconstruct them at a price not lower than the replacement value and with technical parameters not inferior to those of the asset.

This decision was taken in order to reduce the burden on farmers and to simplify the administration of the support. According to the data of the National Paying Agency under the Ministry of Agriculture, during the whole period of implementation of the Lithuanian Rural Development Programme 2014-2020, there were only 10 situations where damage was caused to an investment for which support was used to purchase or create the asset. In contrast, beneficiaries incurred insurance costs amounting to EUR 18.605 million during this period.

It is also estimated that the verification of the asset insurance commitment requires about 2 248 working days – 10 posts for the entire project control period (i.e. 5 years).

Although the obligation to insure the assets acquired with the assistance has been waived, it is important to bear in mind that in the event of an insured event, and in the absence of insurance, such assets will have to be recovered from the project's own resources.