From this Wednesday, January 12, MEPs are looking into the overhaul of crop insurance, aimed at better compensating farmers in the face of increasingly frequent climatic disasters. An overhaul of the compensation for agricultural losses which comes after the disaster of last spring where a severe episode of late frost caused on average 70% of damage in the vines of Yonne. “It was a cataclysm. Me, I make red wine and it goes up to 80, 90% losses. There is no exploitation that can keep up with this rate“confesses, a bit disillusioned, Christophe Ferrari, winemaker living in Irancy (Yonne) for 35 years.
Presented to the Council of Ministers at the beginning of December, the reform provides for farmers to bear the smallest losses out of their own funds (up to 20%). Insurance would then take over up to a threshold yet to be defined. Beyond that, for an exceptional event, the State would intervene, with higher indemnities for the insured.
Only 30% of Yonne winegrowers are insured today
The government’s goal? May more wine growers be assured. The problem being that “it costs too much ““according to several winegrowers who assess the risks and decide whether or not to be covered.”Today, with the increase in climatic hazards, fewer and fewer colleagues are choosing to insure their vines. The problem is that the risk is no longer supported not enough people“believes Christophe Ferrari. It is then the whole insurance system which would then be condemned. And the more we have small harvests, the less we are compensated according to the calculation methods of the current system.”We are therefore no longer sufficiently protected in relation to the expenses that must always be incurred.“concludes the Irancy winegrower.
The bill presented by Agriculture Minister Julien Denormandie on December 1 aims to encourage farmers to take out insurance. Even in the event of heavy losses, the uninsured will be significantly less compensated. The State promises – for the insured – better compensation for damage, shorter deadlines for coverage, and simplified procedures with the establishment of a one-stop shop.
Crop insurance that has become unsuitable
But it is the entire compensation system that must be reviewed according to him. Adrien Michaut, president of the Syndicate for the defense of the Chablis appellation (SDAC), agrees: “It is good that the State realizes that it is necessary to modify this crop insurance which is no longer at all adapted to the vagaries that we have suffered for many years“.
“What is expected is that the calculation method is reviewed“he blurted. Currently, it is the last five years that are taken into account, except for the worst and the best result, for the calculation of crop losses. An average which, because of the various recent climatic hazards, continues to decline year after year. “So, it’s not worth insuring. Insurance costs us too much for what we can be compensated for“according to the president of the SDAC. And with a catastrophic year 2021, an increase in contributions between +15 and + 25% is already expected for this year 2022.
The government wants this bill to be able to complete its parliamentary route by the end of the legislature, with a view to entry into force on January 1, 2023.