How about the new formula?

While climate accidents are increasingly impacting agricultural activity, new provisions in the law reforming tools for managing climate risk are specifically aimed at restoring crop insurance benefits.

Faced with the frequency of climate events, the new text provides coverage of agricultural climate risks aimed at making them more accessible to farmers.

On February 24, Parliament adopted the Reform Act. Agricultural climate risk management tool.. The state announces:

  • The entire UN band has increased to 600 million euros annually, compared to 300 euros today.
  • The speed of compensation will increase.
  • Clear distribution of risk among farmers, insurance companies and states.

To find: Complete invoice.

3 insurance floors

The new device distinguishes between the three floors and shows the details of the Ministry of Agriculture.

  1. Absorption of low intensity risk at the individual farm level.
  2. Inter-sectoral inter-sectoral reciprocity with moderate-intensity risk areas through multi-risk climate insurance.
  3. A direct state guarantee against so-called “catastrophic” risks.

The main axis of reform: The government relies on farms’ decisions to insure against climate risks by making crop insurance more attractive. So far, only 18% of farms are covered by so-called multi-risk climate insurance. There are large disparities between sectors. The new version should be operational in early 2023, when the new CAP will be launched.

70% premium subsidy

The features of the new version are:

  • The deductible and premium subsidy rates are 20% and 70%, respectively.
  • The state intervenes from 30% of losses in the least insured sectors such as meadows.
  • A tripartite committee involving states, farmers and insurance companies will operate a new compensation system for crop losses.
  • According to a Senate press release, the incentive is planned to “remove certain obstacles to farmers’ insurance policies.” Let’s cite the reduction of insurance premiums, the revision of the minimal surface covered by the contract, and the maintenance of the right to dispute for loss assessment.

Between support and opposition to new crop insurance

On the agricultural side, FNSEA is supporting reforms. Same as above for agricultural cooperation. We especially welcome Article 5-2. Co-operatives will be able to set accounting rules that can be released in the event of agricultural or climatic hazards. “Co-operatives will be able to secure a portion of their operating profit in favorable years and redistribute it to their members in less profitable years. This is to compensate for the losses and therefore the sustainability of the farm. To ensure that, “says the agricultural cooperative.

The tones on the side of local adjustment are not the same. A press release released late last year expressed opposition to the bill aimed at “generalizing the use of crop insurance.” Confederation Paysanne, FNAB and beekeeping organizations are also against it. They all condemn the principle of private insurance, which benefits only a limited number. They are also worried about the fate of the farm.that is “People who don’t generate enough cash to pay for crop insurance contracts.” And “Insurers believe that their production does not represent a sufficiently profitable market (bee farming, horticulture, etc.), Or someone in an area that is considered too risky by private insurance … “

Also read about crop insurance:

How to choose crop insurance?

Less than one-third of its surface is covered.

Crop insurance restrictions.

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