Emmanuel Macron announced on Friday a “simplification” of the rules of the new crop insurance system, confirming a commitment from the State to the tune of 600 million euros and a probable compensation threshold of 20% of losses, to better protect the farmers in the face of climate risks.
I confirm the 600 million euros (…). The state will more than double its total contribution to the system, 600 million euros, declared the President of the Republic during a meeting with young farmers in Loiret.
We are going to try to simplify the rules, and to keep to what I understood to be this sacrosanct 20, 70, 90. 20% to create a breath of fresh air and a real attractiveness for this insurance system, declared the head of state.
The 20, 70, 90 triptych corresponds precisely to the demands of farmers.
The majority union FNSEA pleaded tirelessly for a threshold for triggering coverage of 20% of production losses (against the 25% which were under discussion), for the subsidization of 70% of insurance contributions (against 65% currently) and for disaster compensation, provided for within the framework of national solidarity, up to 90%.
These three figures correspond to the three stages of the new universal compensation scheme which is to come into force on January 1, 2023, with a first level falling under the farmer, who alone bears the losses up to a deductible threshold; a second level under the private insurer; and a third level mobilizing national solidarity, with public funds.
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While making a gesture, evoking a 20% franchise threshold, Emmanuel Macron provided for a review clause in the event of the annual envelope dedicated to national solidarity being exceeded.
If we exceed 680 million euros, the state cannot be a blind payer, we will have to put all the stakeholders around the table, he warned.
Hard hit by frost last year, heat wave and drought this year, farmers were expecting a reform of crop insurance from the state that would encourage as many farmers as possible to take out insurance – currently only 30% insured in arable crops and 5% in arboriculture – in exchange for better coverage, guaranteeing the sustainability of their businesses.