In 2023, the new crop insurance scheme will be introduced to protect farmers affected by climatic events.
The proliferation of climate hazards has indeed led to a re-examination of public support mechanisms for protection and compensation measures, while rethinking agricultural practices themselves in a logic of prevention and adaptation. In this context, a broad consultation of all stakeholders on ways to improve risk management tools in agriculture was launched in the summer of 2019.
This work then continued within the framework of the “Agricultural Products for Water and Climate Change”, which was held between May and December 2021. It resulted on March 2, 2022 in the proclamation of Law No. 2022-298 with information on a better distribution of crop insurance in agriculture and reform of the tools for managing climate risks in agriculture. This law, passed in record time, establishes a new framework for the development of crop insurance from 2023. It is based on national solidarity and risk sharing between the state, farmers and insurance companies according to three levels of loss coverage.
Thus: common hazards will be borne by farmers who may also rely on other mechanisms, such as those in the recovery plan) to invest in protective equipment to improve their farm’s resilience to climatic hazards; major contingencies will be covered by subsidized insurance for farmers who have chosen to take out insurance; finally, extraordinary hazards will trigger government intervention, even for uninsured farmers. This reform intends to significantly improve the coverage rate of Ferme France with insurance tools.
Therefore, the parameters of the new system are particularly encouraging. To support this ambition, the state’s contribution will be added to the annual framework of European credits from the EAFRD. The public expenditure resulting from the implementation of this new system is part of a framework which could reach an annual amount of 600 million euros in 2025 as insurance develops, that is to say a doubling of the resources allocated to risk management before the reform.