A bill laying down
"the foundations and outlines"
of a universal compensation scheme for farmers in the event of climatic accidents is presented this Wednesday in the Council of Ministers.
Sketched in September by Emmanuel Macron, it will be debated in January in the National Assembly for entry into force on January 1, 2023. This bill comes after the late spring frost, which devastated orchards and vines and highlighted the vulnerability of farmers to climatic hazards and the weaknesses of a
“running out of steam” system.
Less than 18% of farmers are covered against these increasingly frequent and intense risks.
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Why farmers are very insecure in the face of climatic hazards
The proposed new system has
“three floors”
. At the first level, farmers bear the smallest losses out of their own money (up to 20%). Beyond that, the losses (between 20 and 50%, according to some sources) are supported by private insurers. Finally, public funds would take over to compensate for disasters (freezes, floods, etc.)
"of exceptional magnitude"
. The precise thresholds will be determined by decree. As for state subsidies, they will be doubled, going from 300 million to 600 million euros.
To encourage farmers to take out insurance, the state will increase the subsidies it grants on insurance premiums (they may reach 70% of the amount).
And uninsured farmers will not be able to receive all of the public funds allocated to disaster victims, even in the event of heavy losses.
Insurers, for their part, will have to work within the framework of a "group" (or "pool").
All players in the sector should be obliged to join.
This will make it possible to share data and pool risks, to establish an insurance premium that is as fair as possible.
With the proliferation of weather-related claims, insurers report losing money since 2016 with crop insurance.
