2024-04-16 15:31:03
300% increase in agricultural insurance. This complaint has been made by Cooperativas Agroalimentarias de Extremadura, who affirm that this increase will seriously affect the economy and finances of producers in the region. This association has asked the European Union to intervene in this situation to avoid further damage to farmers and ranchers in the region.
The Association of Agri-Food Cooperatives of Extremadura has explained that this disproportionate increase in agricultural insurance is due to the elimination of some subsidies by the Spanish Government. According to what they have reported, the Ministry of Agriculture, Fisheries and Food has eliminated subsidies for contracting agricultural insurance in Extremadura, which has caused this increase that can endanger the sustainability of many farms.
To put it in context, in 2023 there was an increase of 17.8% in agricultural insurance and agricultural organizations already warned of the serious effects this had on the economy of producers. However, this year the increase has been even greater and has led the Association of Agri-Food Cooperatives of Extremadura to request urgent intervention from the European Union.
The President of this association, Ángel Pacheco, has declared that the total cost of agricultural insurance in Extremadura could reach 50 million euros, which represents a real risk for the region’s economy. Furthermore, he has pointed out that this increase can have serious consequences for the sector and for the profitability of farms, especially at a time when the prices of agricultural and livestock products are falling.
For its part, the Ministry of Agriculture, Fisheries and Food has denied having eliminated subsidies for the contracting of agricultural insurance and has explained that it is an adaptation to the new Common Agricultural Policy of the European Union. However, agricultural organizations claim that this adaptation has been made without the necessary dialogue and collaboration with the sector, which has resulted in an uncontrolled rise in insurance prices.
The news has generated great concern among farmers and ranchers of the region, who see this increase as another blow to their already battered economy and finances. Some have even warned that if this increase in insurance continues, they could be forced to abandon their farms and look for other forms of subsistence.
Given this situation, Cooperativas Agroalimentarias de Extremadura has asked the European Union to review the Common Agricultural Policy and make modifications that allow greater dialogue with the sector and avoid this type of disproportionate increases in agricultural insurance. In addition, it has asked the Spanish Government to commit to maintaining subsidies for the contracting of agricultural insurance in the region.
The agricultural and livestock sector is fundamental for the economy of Extremadura, since it represents a significant percentage of the region’s GDP and generates thousands of jobs. Therefore, it is essential that both national and European institutions maintain a position of support and collaboration with producers, especially in times of crisis like the one we are currently experiencing.
In summary, the 300% increase in agricultural insurance in Extremadura, denounced by Cooperativas Agroalimentarias de Extremadura, has generated great concern in the sector and has highlighted the need for greater planning and dialogue in agricultural policies. We hope that the European Union will take action on the matter and reach a solution that does not seriously affect the economy and finances of farmers and ranchers in the region.
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