Factsheet for measure
FR-2023-1/3374
–
Updated
– measures in France
Crop insurance reform
Réforme de l’assurance récolte
Background information
Faced with the growing impact of climate change on agriculture, the government has decided to modify the old system of agricultural disasters and crop insurance, which have shown their limitations, in order to support the maintenance of farmers' activity with a view to preserving "national sovereignty". The two previous schemes were:
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Aid for crop insurance, financed under the Common Agricultural Policy, enabling farmers to sign an insurance contract to cover their crops and, in the event of losses, to receive compensation.
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Compensation paid directly by the National Agricultural Risk Management Fund (FNGRA) in the event of an exceptional climatic event to compensate for the loss of an uninsured harvest or the destruction of property.
With the increase in destruction linked to climate change, insurance has become more expensive; the spread of crop insurance has not developed (20% of farmers covered), and the system has left certain crops uninsured. A reform was therefore needed in order to address the situation.
Content of measure
The law 2022-298 of 2 March 2022 introduce a new system based on national solidarity and risk sharing between the State, farmers and insurers.
Starting with 2023, a single three-tier risk cover system will be introduced, operating as follows:
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Current risks (1st tier) are borne by farmers, who can also draw on other tools and aid for investment in protective equipment, to improve the resilience of their farms in the face of climatic hazards;
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Significant hazards (2nd tier) are covered by subsidised multi-risk weather insurance, for farmers who have chosen to take out insurance;
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Exceptional hazards (3rd tier) trigger State intervention, via national solidarity, including for uninsured farmers. The threshold for triggering national solidarity, and the corresponding deductible, vary from one sector to another: 50% or more crop losses for field crops, industrial crops, vegetables and wine growing; from 30% crop loss for arboriculture, small fruit, meadows and specialist crops (perfume, aromatic and medicinal plants, beekeeping, horticulture, heliciculture, nurseries).
In addition, the subsidy on insurance premiums and contributions has been increased. The rate of subsidy on insurance premiums and contributions has been increased to 70% in 2023 (compared with an average of 62% in 2022), and the scope of subsidisable cover has been widened, with in particular a level of excess that can be subsidised from 20% (compared with 25% in 2022).
In addition, in the event of a claim, compensation conditions will be more favourable for farmers who have taken out a crop insurance policy.
Updates
The following updates to this measure have been made after it came into effect.
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20 February 2025
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The crop insurance reform launched in 2023, aiming to better protect farmers from climate risks, saw a slowdown in subscriptions in 2024. This decline is due to the mild weather, economic challenges, and a lack of information. The goal remains to ensure 60% of farmland by 2030.
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Use of measure
No information available.
Target groups
Actors and funding
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Actors
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Funding
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National government
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Companies
European Funds
National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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No involvement
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Consulted
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Form
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Not applicable
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Direct consultation outside a formal body
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Social partners' role in the
implementation, monitoring and assessment phase:
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Unknown
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Main level of involvement: Sectoral or branch level
Involvement
Such reform is discussed between the Ministry of Agriculture and the employers' organisations of the agriculture sector, mainly the FNSEA.
Views and reactions
The 4 representative employers' organisations have welcomed this reform. See (
FNSE Press release
)
Sectors and occupations
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This case is sector-specific (only private sector)
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Economic area
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Sector (NACE level 2)
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A - Agriculture, Forestry And Fishing
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A1 Crop and animal production, hunting and related service activities
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This case is occupation-specific
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Occupation (ISCO level 2)
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Agricultural, forestry and fishery labourers
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Sources
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03 March 2022: Loi n° 2022-298 du 2 mars 2022 d'orientation relative à une meilleure diffusion de l'assurance récolte en agriculture et portant réforme des outils de gestion des risques climatiques en agriculture
(www.legifrance.gouv.fr)
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21 February 2023: Ministère de l'Agriculture et de la Souveraineté alimentaire, La réforme de l’assurance récolte
(agriculture.gouv.fr)
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30 August 2023: Ministère de l'Agriculture et de la Souveraineté alimentaire, Document de présentation de la réforme de l'assurance récolte
(agriculture.gouv.fr)
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20 February 2025: Risques climatiques : pourquoi la réforme de l'assurance-récolte peine à séduire les agriculteurs
(www.lesechos.fr)
