The government is presenting a crop insurance reform

The government wants to provide more affordable crops for agriculture. This is the issue of the bill introduced on Wednesday 1er December in the Council of Ministers. It should be examined by Parliament in mid-January 2022 for entry into force in 2023.

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The aim announced by the Ministries of Economy and Agriculture, which have worked together on the file, is to reform the existing model in depth, as the current coverage rate of a farm is less than 18%. . It is also highly variable by industry: leading crops, crops and viticulture, with more than a third of each farm insured; in the back of the pack, the meadows, of which 3% are insured.

The spring frost, which severely affected vineyards and fruit trees, helped boost reform. The state had then pledged € 1 billion to support businesses affected by the violent climate.

Inspired by the Spanish model

For the recognition project, the government was inspired by the Spanish model. It is based on a three-storey architecture, depending on the severity of the damage. The first, which concerns the limit losses corresponding to conventional crop variations, is borne by the farmer. The second, which is more important, will be covered by private insurance. But the state will subsidize the cost of insurance. Finally, in the event of a climate disaster, the state will directly assist farmers.

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And the broad outlines of the recognition insurance reform have been outlined, the rest of most areas of shadow. The various cursors will be fixed by decree and have not been revealed. The government states that the arbitrations are not over and emphasizes that the European law has a fixed ceiling. It will be necessary to establish, by ordinance, the organization of an insurance “pool” for the mutualisation of risks between different insurers. Without waiting for clarification, the ministries estimate that state subsidies will double from 300 million to 600 million euros.

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