Harvest insurance 2023-2025 (2/2): the conditions for benefiting from the 70% subsidy rate

Eligible crops

Only crops, including catch crops, intended to be valorized and grasslands are eligible for aid for crop insurance. Intermediate crops for energy purposes (Cive), intermediate crops that trap nitrates (Cipan), fallow land, collective summer pastures or grazed woods are not eligible.

Grasslands: the key parameters

The breeder must undertake to insure 100% of the permanent, temporary and artificial grassland surfaces of his farm (the choice is free in the case of unproductive surfaces such as moors and rangelands). A margin of 5% is granted to facilitate the processing of aid application files by the DDTMs.

To be subsidizable, the triggering threshold and the deductible must be identical and between 20% and 25%, knowing that the triggering threshold for compensation based on national solidarity is set at 30% of losses. The insured capital must be between 60% and 120% of the scale value, expressed in €/ha.

The purpose of the contracts is to guarantee the fall in a grassland production index (IPP), caused by a climatic hazard. For the 2023 campaign, the approved index is the Airbus IPP index. The PPI is measured at the scale of the zones defined by the insurance company, after a favorable opinion from the Index Committee. The variation of the PPI is obtained by comparing the index measured in the area during the insured year, with the average of the indices measured during the previous 3 years, or during the previous 5 years, excluding the highest value and the lowest value in the same area (Olympic average).

Sales cultures: contracts by culture groups

Crop insurance contracts eligible for the subsidy can be taken out by crop group, namely: field crops (including industrial crops) and the production of their seeds, vegetables for industry and the fresh market (and production of their seeds), viticulture, arboriculture and small fruits, meadows and finally other productions (PPAM, horticulture, nurseries, beekeeping, aquaculture and snail farming). The coverage rate must be at least 70% for the “field crops” and “vegetables” groups, 95% for the “grasslands”, “viticulture”, “arboriculture and small fruits” groups.

The guaranteed return is between 90% and 100% of the historical return (except in duly justified cases). The insured price is between 60% and 120% of the value of the scale or of the actual selling price previously reduced by 17% in the absence of reference to the scale. The trigger threshold for this type of contract must be a multiple of 5 or 10, lower than the threshold for triggering compensation under national solidarity, and at least 20%. The deductible applied is set at the same level as the subscribed trigger threshold.

Sales cultures: farm contracts

This type of contract must cover at least 80% of the farm’s production area under sales crops, defined as the useful agricultural area less the areas in grassland and fallow areas, and at least two different crop groups as well at least two different kinds of crops in each of the crop groups. The areas covered by a crop group contract and by a farm contract are not combined for the calculation of the coverage rate.

Within the same farm, between the different types of crops insured, the gains on one type of crop can compensate for the losses on another type of crop.

The guaranteed return between 90% and 100% of the historical return (except in duly justified cases). The insured price is between 60% and 120% of the value of the scale or of the actual selling price previously reduced by 17% in the absence of reference to the scale.

The triggering threshold for this type of contract must be a multiple of 5 between 20% and 25%, lower than the triggering threshold for compensation under national solidarity, and at least 20%. The deductible applied is set at the same level as the subscribed trigger threshold.

Taking quality losses into account

The loss of quality is defined as the quantifiable and objectifiable loss induced by an alteration in production, clearly and directly attributable to one or more climatic hazards. The loss of quality can be recognized for the following situations: germination of standing grains, reduction in the germination capacity of seeds (below standards), change of category or downgrading for fruits and vegetables as well as for tobacco, rate insufficient sugar for beets, insufficient fiber content for textile flax, flax fibres.

Only the quality losses linked to these criteria and leading to a reduction in the production of the crop considered in the marketing category for which it was initially intended can be retained for the assessment of harvest losses.

Any other type of quality loss constitutes a non-subsidizable guarantee of the contract.

Possible consideration of risk prevention measures

Insurers may provide in their general terms and conditions or their special terms and conditions for taking these prevention measures and practices into account in the determination of insurance premiums or contributions, when it is established that the means implemented by the insured operator are able to reduce their exposure to the vagaries of the weather for their types of harvest. These methods of taking into account may in particular consist of a reduction coefficient of the total amount of insurance premiums or contributions. This may include, in particular, equipment for storing rainwater, irrigation systems, anti-hail nets, radars and devices for detecting storm cells, wind towers, whether or not equipped with a generator of heat, hot air convectors, sprinkler and micro-sprinkler equipment.

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