The Polish scheme SA.107026 establishes State aid for subsidizing premium subsidies for crops and livestock insurance and for (partially) refinancing compensation indemnities paid to agricultural producers as a result of droughts. The objective of the scheme to encourage agricultural producers to insure their basic crops as well as their most important livestock species in Poland, by reducing the cost of insuring agricultural production against the effects of losses caused by adverse climatic events. Therefore, the scheme helps preserving stable incomes for agricultural holdings. The scheme contributes to the general objective of fostering a smart, competitive, resilient and diversified agricultural sector ensuring long-term food security, by ensuring that the production income from insured crops and livestock is generated at least at levels resulting from the insured amount. The scheme has also a cross-cutting objective to support fair farm incomes and the resilience of the agricultural sector across the Union in order to enhance long-term food security and diversity in agriculture and to ensure the economic stability of agricultural production in the Union.