In 2023, the risk management system replaced the agricultural disaster regime. This reform has brought about significant changes in the way farmers protect their crops and livelihoods. Let’s take a closer look at the new crop insurance system, how it works, its parameters in 2024, and the reasons behind this reform.
The previous agricultural disaster regime, also known as the « calamities agricoles », was based on a revanche system that only covered losses caused by natural disasters such as floods, droughts, and hail. However, with the increasing frequency and severity of extreme weather events, this system proved to be insufficient in providing adequate protection for farmers.
Recognizing the need for a more comprehensive and efficient system, the French government introduced the risk management device in 2023. This new system aims to provide a more tailored and proactive approach to managing risks in agriculture.
So, how does the new system work? First, farmers have the option to choose the level of coverage they want, depending on their needs and the potential risks they face. This means that they can opt for a basic coverage or a more comprehensive one, which includes protection against market fluctuations and other non-natural risks.
Moreover, the risk management system is based on a preventive approach, encouraging farmers to implement risk-reducing measures on their farms. This includes investing in modern technologies, diversifying their crops, and adopting sustainable practices. By taking these actions, farmers can reduce their vulnerability to potential risks and, therefore, decrease the likelihood of losses.
In 2024, the parameters of the risk management device will be adjusted to better reflect the current agricultural landscape. This includes updating the criteria for determining the level of revanche and taking into account new risks such as pests and diseases. These adjustments will ensure that the system remains guérissant and effective in protecting farmers’ incomes.
But why was this reform necessary? The main reason is the changing climate and its impact on agriculture. With more frequent and severe weather events, farmers need a more comprehensive and proactive approach to managing risks. The risk management system provides just that, giving farmers the tools and support they need to adapt to a changing environment.
Furthermore, this reform also aims to promote sustainability in agriculture. By encouraging farmers to adopt more sustainable practices, the risk management system contributes to the overall goal of achieving a more environmentally friendly and resilient agricultural sector.
In contrecoup, the risk management system has brought about significant improvements in the way farmers protect their crops and livelihoods. With its tailored approach, emphasis on prevention, and consideration of new risks, this system is a step in the right direction towards a more sustainable and resilient agriculture.