More than 270 million euros for contracting agricultural insurance

The Council of Ministers approved a few days ago the modification of the 43rd Combined Agricultural Insurance Plan to incorporate the budget allocation in the 2022 financial year, estimated at 18 million euros, “necessary to be able to apply the 10 percentage point increase in the base subsidy in the lines of insurance that begin their contracting from next September 1, ”explain official sources.

Thus, the Minister of Agriculture, Fisheries and Food, Luis Planas, assured that the Government “is committed to agriculture, livestock, fishing and the agri-food sector and the agricultural insurance system, of which our country is a pioneer in its implementation , constitutes one of the main support tools”, and stressed that this additional financing is “a very effective measure, which will give greater stability to the income of our farmers and ranchers”.

The Ministry recalls that the expansion of this endowment is one of the measures approved by the Council of Ministers on June 25 within Royal Decree-Law 11/2022, which extends and approves new measures to support the agricultural sector in the face of the current context of increased costs in farms resulting from the war in Ukraine for which a budget of 60 million euros was allocated.

With this increase, the budget for this financial year rises to 275.7 million euros, a figure “never before reached in the history of insurance, and which is more than 50% higher than the approved budget for each of the exercises of the period between 2013-2020 », they emphasize.

With all this, this measure is essential for the support policy for agricultural insurance, a basic tool for farmers and ranchers and to protect the sector from adverse natural phenomena, aggravated by the situation caused by the current climate change scenario.

“This support action is the second major change to be carried out in 2022 in the agricultural insurance policy, after the new mechanism that provided greater protection to the system by public reinsurance, through the Consortium of Insurance Compensation, and which was published in the BOE on June 30 through Order ETD / 600/2022, of June 29, ”recall those responsible for the Ministry of Agriculture.

With these extraordinary measures, to which must be added the increases in the ordinary budget approved for the years 2021 and 2022, the Government recognizes the priority nature of agricultural insurance, as it is the main instrument available to the farmer for the management of risks that may affect their farms, and thus be able to guarantee their viability and support for agricultural income.