A new crop insurance scheme for farmers

Farmers will be covered by a new insurance mechanism. Jean Castex confirmed Wednesday, September 8 the next introduction of this measure, in a speech delivered at the Elysee Palace after a Council of Ministers and a government seminar.

“As I promised you, we will present, in the coming days, a new harvest insurance scheme supported by the public authorities which will guarantee farmers better coverage of losses caused by natural disasters”said Jean Castex during a press conference.

“National solidarity must be expressed”

During a visit to a vineyard in the Hérault, the Prime Minister said on April 17 that it was necessary “redesigning the crop insurance software”according to M The magazine of the World. The head of government mentioned “a very strong reform of crop insurance”during a trip to Cheverny (Loir-et-Cher) on June 16.

“The claims are too frequent, the insurers no longer find their account. National solidarity must be expressed, via the second pillar of the CAP. I hope we will have found solutions in 2022”Jean Castex had said, reports the magazine’s website The Winegrower of the Loire Valley. The second pillar of the CAP, an acronym for the common agricultural policy, concerns rural development in the European Union (EU).

Several questions arise regarding the device. Will it be financed solely from public funds? Will farmers have to pay contributions? Solicited by Family FolderMatignon assures that he intends to send us answers ” as soon as possible “. The office of the Minister of Agriculture and Food, Julien Denormandie, did not answer our questions.

2021 has been a particularly trying year for farmers. Heavy rains and bouts of frost affected harvests. Grape production suffers from diseases that have affected the vines.

According to M The magazine of the Worldtwo crop insurance systems currently coexist:

  • a disaster regime, from the Ministry of Agriculture, which compensates only major losses caused by serious climatic events;
  • coverage from private insurers.

The calamity scheme is financed by a tax paid on compulsory insurance and State financing. An EU subsidy helps farmers finance contributions from private insurers.

Increase in farmer income

The head of government posted his “intention of better […] protect “ Farmers “in sharing the value of their work”so that these professionals “can live on income from their activities”.

Jean Castex referred to “a first law called EGalim 1, which we have found, let’s be clear, that it did not have, that it did not completely achieve its objective”. This text, the law of October 30, 2018 for the balance of commercial relations in the agricultural and food sector, aimed in particular to allow a rebalancing of value for the benefit of farmers.

For the Prime Minister, the bill aimed at protecting the remuneration of farmers, known as EGalim 2, must respond to this ” goal “.

Written and multi-year contracts

This text, carried by the deputy La République en Marche (LREM) Grégory Besson-Moreau, a specialist in the theme of agriculture, imposes in particular the conclusion of written and multi-annual contracts for the sale of agricultural products between a producer and his first buyer. , except for exceptions. It must also allow the inclusion of price revision mechanisms in contracts, allowing a pass-through of increases in production costs, according to the official Vie publique website.

The bill was adopted on June 24 by the National Assembly. It must be debated in public session in the Senate on September 21 and 22, informs the institution of the Luxembourg Palace to Family Folder.

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