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Subsidy for farmers: CSU calls for high state subsidy for drought insurance

2019-09-20T09:19:33.907Z

Farmers in Germany barely take out insurance against drought, because the costs are very high. The CSU has considered a solution for this.




Before the next conference of Ministers of Agriculture, Bavaria calls for the introduction of state-subsidized drought insurance in Germany. One should "not wait any longer," said the Bavarian Minister of Agriculture Michaela Kaniber (CSU). "The situation with several heat years in a row shows us that we have to react quickly." In neighboring countries such as Austria and France, there are similar systems already co-financed by the state.

The agriculture ministers want to discuss it at the end of September. In principle, a state subsidy for drought insurance has been on the ministers' agenda for more than a year, but so far there is no agreement.

Bavaria's proposal: "50 percent of the insurance contributions come from the federal and state governments - 30 percent from the federal government, 20 from the state, and the other 50 percent is paid by the farmer." Bavaria had started a Federal Council initiative, this is supported by Kanibers information from Baden-Württemberg, in other states, the interest was great.

After the drought in many regions of Germany last year, the hard hit farmers had received about 228 million euros state emergency aid. A so-called multi-risk insurance, which includes the drought, but in Germany close to only a few farmers. The reason: These policies are expensive, as drought is one of the dreaded "cumulative risks": a damage that occurs more frequently, as dryness does not affect individual farmers, but entire areas. The insurance industry then has to make very high claims payments in one fell swoop.

Source: spiegel

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