Harvest losses are now compensated by two parallel, even competing schemes: multi-risk climate insurance and the agricultural disaster scheme. The first, 65% subsidized by the state, is loss-making and covers very few farmers (less than 20%). The second, co-financed by farmers and the State, excludes certain crops (viticulture and field crops) and its deadlines are too long.
This system, designed in the 1960s, is considered unfair, illegible and unsuited to the current challenges of climate change and its vagaries. Over the past five years, the cost of agricultural claims has more than doubled compared to 2010-2015.
The bill proposes to reform this system by establishing a cover against climatic risks accessible to all farmers. To this end, a new universal system of compensation for crop losses resulting from climatic hazards is created as of January 1, 2023. This scheme will be based on national solidarity and the sharing of risk between the State, farmers and insurers.
One unique three-stage device coverage of climate risks is planned:
- for low intensity risks (up to 20%), risk absorption by the farmer;
- for medium-intensity risks, pooling of risks between territories and sectors through multi-risk climate insurance, the premiums of which are subject to a public subsidy (at the rate of 65%);
- for so-called catastrophic risks, a direct guarantee against risks by the State.
A one-stop shop will be created to simplify procedures.
A new dialog instance on crop insurance topics has also been instituted: dedicated training within the National Committee for Risk Management in Agriculture.
The bill empowers the government to complete this system by ordinance.
The government is also asking for an authorization to set by ordinance the conditions of a new regime for farmers in the overseas territories.
Finally, a last provision, which will benefit farmers in particular, completes the text. It allows insurers to provide for different cover conditions for storm cover and fire cover in insurance contracts relating to professional property.