As a reminder, from 1eh Next January, the agricultural disaster system will disappear in favor of the National Solidarity Fund (FSN). Funded by the state budget, CAP credits and the additional tax on agricultural insurance contracts, the FSN will compensate all farmers when a climatic hazard generates losses of 30% or more in grassland, arboriculture (small including fruits), aromatic and medicinal perfume plants (PPAM) and other productions such as diversified horticulture, horticulture, nurseries, beekeeping, aquaculture or heliculture. For field crops and vines, the threshold to trigger FSN will be 50% loss. In any case, the level of loss will be assessed by comparing the year’s dividend with the three-year average dividend calculated on the basis of the previous five years, excluding the highest value and the lowest value (Olympic average).
FSN discount for the uninsured
The FSN will without exception benefit all farmers, whether or not they have taken out a crop insurance contract, which will be triggered for losses between 20% (deductible) and the trigger thresholds for the FSN (ie 30% or 50% as the case may be ). However, to consolidate insurance and move towards pooling climate risks, through the DSF, policyholders will benefit from a loss compensation rate of 90% when the uninsured will be compensated up to 45% in 2023. This rate will increase to 40% in 2024 and 35% in 2025, with the exception of PPAM and other productions (diversified horticulture, horticulture, nurseries, beekeeping, aquaculture or heliculture), for which the rate will be maintained at 45% during these three campaigns. This is what a decree of November 10 specifies. This same decree sets the maximum amount for the DSF at 680 million euros per year. ” When the expenditure exceeds an annual amount of 680 million euros, the financing conditions of the system are likely to be changed, in particular by revising the applicable thresholds and rates for the remaining period from the period 2023 to 2025. “, the decree states.
Contracts by farm
The decree also clarifies the scope of the crop insurance subsidy. In order to benefit from coverage of premiums or insurance contributions up to 70% (compared to 65% currently), the decree distinguishes between two types of contract, namely the contract “by group of crops” and the contract “by exploitation”.
With regard to the “crop group” contract, the coverage rate is set at 70% for the crop group “field crops, industrial crops and vegetables” (excluding diversified horticulture). Outside this group, the degree of coverage is set at 95% by crop type. The franchise rate, meanwhile, must be between 20% and a percentage of 5 points below the DTF trigger threshold. However, as regards the crop groups “field crops, industrial crops, vegetables (except diversified horticulture)” and “viticulture”, this trigger threshold must be between 20% and 40%.
Contracts by farm
For the “per farm” contract, the farmer must insure at least 80% of the farm’s salable crop area, defined as the usable agricultural area minus areas of grass and fallow land, and at least two different types of harvest. With regard to the franchise fees, the 70% subsidy is subject to a trigger rate of between 20% and 25%.