2023-12-14 01:01:56
The Coordinator of Farmers and Livestock Organizations (COAG) calls for a structural reform of the Spanish agricultural insurance system in the face of the effects of climate change on agricultural activity.
This was conveyed to the top officials of ENESA, Agroseguro and Consorcio de Compensación, during the meeting held at the COAG headquarters in Madrid.
In recent years and in the face of climate change, the damage is greater, the agricultural insurance guarantees are lower, and the price is higher.”
“A State pact is necessary so that, apart from the Ministry of Agriculture, there is involvement of the ministries of Ecological TransitionEconomy and Finance in the redesign of risk management policies in the field,” said the head of Agricultural Insurance at COAG, Pedro Garcia, while warning that “until now, the farmer and rancher had had a perception of the acceptable cost/return, in relation to the cost of the insurance and the benefit they have obtained. However, in recent years and in the face of climate change, the damages are greater, the guarantees are lower and the price is higher.”
In this sense, COAG has presented a proposal to achieve the universalization of agricultural insurance based on the following characteristics:
Linking the assurance of general basic coverage for all those farmers and ranchers who receive any type of public aid or subsidy. Remove extraordinary compensation derived from climate change from insurance, so that it does not affect its price. Assumption of these risks by the Insurance Compensation Consortium. Base insurance with an attractive price, which covers very important damages that cannot be controlled by the farmer, guaranteeing the viability of the farms. Universalization of agricultural insurance, based on the principles of solidarity and proportionality of its cost compared to the real risks of each crop and exploitation. Make a powerful tool for agricultural policy, favoring young farmers’ roots in the countryside. Faced with a greater risk due to climate change, a greater dispersion of it by increasing hiring. Strengthen a figure of agricultural insurance advisory entity that helps with the contracting of insurance and the most problematic appraisals. With all this, we would achieve a more optimized system for each type of insurance, more efficient and economical, greater contracting in better line with subsidies, better advice, and greater recognition of the role played by farmers and ranchers.
“We are not only talking about creating an effective safety network to ensure the viability of agricultural holdings. “We are talking about guaranteeing the security and food sovereignty of citizens and the economic, social and environmental development of our rural environment,” he clarified. James Bernisresponsible for Climate Risk Management of the COAG Executive Commission.
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