A new vision for agriculture
momagri, movement for a world agricultural organization, is a think tank chaired by Christian Pèes.
It brings together, managers from the agricultural world and important people from external perspectives,
such as health, development, strategy and defense. Its objective is to promote regulation
of agricultural markets by creating new evaluation tools, such as economic models and indicators,
and by drawing up proposals for an agricultural and international food policy.
Terre-net
  Focus on issues  
 

A new “pedestal insurance contract” to be tried at the end of the year



Frédéric Hénin, Editor-in-Chief, Terre-net


Article published in Terre-net Média



The Orama grain growers’ federation of unions (Agpb, Agpm, Fop) hoped that Stéphane Le Foll would be attending to their Sommet du Végétal in Mont-de-Marsan “to give them freedom to take action”. The Minister of Agriculture has just announced the launch of a new “pedestal insurance contract” to be tried at the end of the year.

The grain growers shouldn’t expect too much. To the many claims made by Philippe Pinta, President of Orama to give farmers “freedom to take action”, the Minister of Agriculture, Stéphane Le Foll chose to satisfy only one claim, without providing any details as to its relevance.

At Mont-de-Marsan which hosted the Sommet du végétal organized by Orama last 12th February, he announced that the pedestal insurance contract being studied last year, would be tested at the end of the year. It would provide production protection to all farmers, even breeders. But various additional options should complement this plan, with over two thirds of farmers concerned by these contracts. For example, some options would give grain growers the possibility of insuring their crops against losses with the same coverage as that offered by current multi-risk insurance contracts.

The premiums of these new pedestal contracts would be subsidized by up to 65%. No details have been given for the additional options mentioned.


A NEW ARCHITECTURE FOR INSURANCE

Initially, the funds for financing the launch of this insurance plan would be European and possibly through the redeployment of part of “crop insurance”. Premiums for financing the FNGCA (national guarantee fund against agricultural disasters), reserved for breeders, could also be redirected towards subsidizing pedestal contracts. These are only assumptions.

For 2020, the Minister of Agriculture does not exclude that during the next CAP reform, some aid from the first pillar would support pedestal contracts and some additional options. But the interim review of CAP reform, currently being implemented, could also lead to redirecting aid in favour of the new contracts as from 2018.

The launch of these pedestal contracts will reconfigure the insurance-protection contracts currently in force. So far, they are the only response to claims regularly made by Orama grain growers to Stéphane Le Foll, Minister of Agriculture. Now they want effective tools to even-out their income which is closely related to agricultural commodity price volatility.


STEPHANE LE FOLL GETS HIMSELF OFF THE HOOK

Otherwise, the Minister of Agriculture did not satisfy the demand of Orama grain growers to make risk deductions more advantageous with regard tax. Orama grain growers would like “complete freedom to reintegrate savings, at the sole discretion of the farmer” without being subject to penalties. This would provide more resources to farmers for accumulating savings in anticipation for bad years and would mitigate amounts that are very variable from one year to the next for social security and tax deductions.

It is the European Commission’s delay in processing the files submitted by the French Government which leaves farmers dissatisfied, explained the Minister when discussing the lack of response to some of their demands. Alone, he is unable to satisfy them. Whether it be the planting of intermediate monoculture corn crops, the Treatment Frequency Indicator retained within the Agri-Environmental and Climate Measures or the integration of the Azur program imposed by the fifth Nitrates Directive program. But less than two months from the opening of the next campaign for CAP aid declarations, farmers no longer have the time to wait!


Terre-net
Page Header
Paris, 15 December 2018