Crop insurance is designed for farmers
Credit: Illustrative photo K6FM
Faced with the increasing costs of damage caused in recent years by increasingly intense and frequent climatic hazards, the law of 2. March 2022 on the reform of climate risk management tools in agriculture established new methods of compensation for losses, harvests resulting from climatic hazards, based on a fair risk sharing between the state, farmers and insurance companies.
From the 2023 campaign, a unique system of three “stages” has been introduced: joint preparedness (1st stage) is taken over by farmers; significant hazards (2nd stage) are covered by a subsidized multi-risk climate insurance for farmers who have chosen to take out insurance. Finally, extraordinary dangers (3rd floor) trigger government intervention via national solidarity, including for uninsured farmers. The threshold for triggering national solidarity and the corresponding exceedance varies depending on the sector:
From 50% crop loss for field crops, industrial crops, vegetables and viticulture; from 30% crop loss for tree crops, small fruits, meadows and specialized crops (perfume, aromatic and medicinal plants, beekeeping, horticulture, heliciculture, nurseries).
The subsidy for insurance premiums and contributions is thus reinforced. The subsidy rate is increased to 70% in 2023 (compared to 62% on average in 2022) and the scope of subsidized guarantees is expanded, notably with a subsidized deductible level from 20% of losses (compared to 25% in 2022). In the event of damage, the compensation terms will be more favorable for farmers who have taken out crop insurance. To simplify the procedures for insured farmers, insurance companies play the role of approved interlocutors and pay harvest insurance compensation as well as the national solidarity compensation, on behalf of the state, for crops insured in 2023.
Farmers are therefore encouraged to contact insurance companies and connect to the Ministry of Agriculture’s website to obtain quotes and, if necessary, choose insurance before their campaign starts. As a reminder, the marketing campaign for multi-risk weather insurance contracts for most crops ends at the end of February (it continues into March for grassland).