The disappearance of agricultural disasters? Crop insurance that is becoming almost mandatory? There were many questions from FDSEA and JA members at the community hall in Epenoy on Wednesday 9 November before the intervention of Groupama Grand Est.
This meeting took place in the presence of Éric Morel, who on the occasion represented the cereals, meat and milk sections of the FDSEA, and Sophie Boillin, a farmer in Avoudrey and vice-president of Groupama Grand Est.
A unit that struggled to convince
“We don’t want to have the answer to everything,” warns Jean-Louis Stémart, vice president at Groupama Grand Est, responsible for the reform of risk management and therefore crop insurance. In particular, the decree specifying the operating parameters of crop insurance for the next Pac was still expected at the time of the meeting. The main principles of the reform are there, however, and the latter apply from 1 January 2023, i.e. tomorrow. It is a long-term job that has been done: to change a device that ultimately succeeded in the dual exploitation of disgruntled farmers and insurance companies. “Without this reform, we would have withdrawn for five or six years”, explains Jean-Louis Stémart, because “multi-risk climate insurance had been in deficit for all these years”. Translation: The insurance companies paid more premiums than they collected contributions, culminating in two nights of frost in the spring of 2021, which ended up forcing the state to commit 1.5 million euros out of its own pocket, in addition to the amounts committed by the insurance companies . save French production. The reform procedure has therefore been accelerated and gathers around the same table: the state, insurance companies, reinsurance companies, but also representatives of farmers who have actively participated in it.
Climate multi-risk insurance (MRC) and grassland insurance struggled to convince farmers, collecting only 30% and 1% of farmers respectively, preventing the contribution base from balancing the risk. Thus, only 17% of agricultural land was insured, although insurance remains an effective means of protecting crops and “giving oneself the means to restart a crop year in the event of a severe blow”, recalls Groupama’s vice president. On the Prairie side, farmers have instead chosen to cover themselves with the agricultural catastrophe system, triggered by the state in case of bad weather, little interested in dedicated insurance…
To find out more, find this full article in our November 18, 2022 issue.
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