Emmanuel Macron ruled in favor of farmers.
During a meeting this Friday with young farmers in Loiret, the President of the Republic clarified the rules of the new crop insurance system aimed at covering them in the event of poor harvests due to frost, drought or to hail.
While the summer was marked by a historic drought and major hailstorms, the Head of State opted for the best possible coverage in order to encourage farmers to insure themselves against climate risk.
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The new system, which will come into effect in January 2023, has three tiers.
Farmers will bear the smallest losses out of their own pockets.
The Head of State announced on Friday that the threshold for triggering compensation for production losses by insurers is set at 20%.
This was demanded by the agricultural world, which had been battling for several months with the public authorities about this threshold (25% were in discussion).
In addition, the State will increase the subsidies it grants on insurance premiums, which will represent 70% of the amount (65% today).
Finally, during disaster situations (frost, floods, etc.), the losses will be compensated by the State up to 90%.
“We are going to try to simplify the rules, and to keep what I understood to be this sacrosanct 20, 70, 90. And to allow, including the sectors which were at 25% on the deductible, to go to 20% to create a breath of fresh air and a real attractiveness for this insurance system
”, declared Emmanuel Macron.
The triptych
"20, 70, 90"
corresponds precisely to the demands of farmers.
Up to 680 million euros per year
“The State will more than double its total contribution to the system, to 600 million euros per year
,” added the President of the Republic.
However, the latter is ready to give farmers a boost.
The State could thus supplement the budgetary envelope of 80 million euros per year.
"If we exceed 680 million euros, the state cannot be a blind payer, we will have to put all the stakeholders around the table
," warned Emmanuel Macron.
Hard hit by frost last year, heat wave and drought this year, farmers were expecting a reform of crop insurance from the State which would encourage as many farmers as possible to take out insurance - currently only 30% of them are. insured in field crops and 5% in arboriculture - in exchange for better coverage, guaranteeing the sustainability of their businesses.
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