Spain: the agricultural insurance system with higher risk coverage
The Government has approved the 37th Agricultural Insurance Plan, whose subscription period begins throughout 2016. The new program has a budget of over 211 million euros, representing an increase of 6.1% from the previous Plan. The Ministry of Agriculture, Food and Environment increases the percentage of support to the hiring of agricultural insurance in all lines.
The Cabinet today approved the proposal of the Ministry of Agriculture, Food and Environment, the 37th Agricultural Insurance Plan, which includes insurance lines whose subscription period begins over 2016, and the percentage of Public support of the Ministry.
The budget for subsidizing the cost of the policies of the Agricultural Insurance approved the Plan amounts to 211’27 million euros, representing an increase of 6.1% over the previous Plan. This increase in public support for the Agricultural Insurance, will allow implementing a series of measures to facilitate access to hiring policies for farmers.
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Among the new Plan include the extension to all lines of an additional grant for the installment payment of the policies underwritten by the State Limited Company for Agricultural Surety (SAECA), and hiring incentives for insurance policies with coverage to drought through increased grant renewal.
In addition, the base grant for almost all of the lines increases and subsidy policies by species for the removal and destruction of animal carcasses.
The primary objective of the 37th Plan of agricultural insurance is to provide the agricultural sector a useful tool for proper management of risks, encouraging the hiring of insurance options that provide greater coverage and thus further ensure the viability of farms. This gives at the same time, greater competitiveness to meet the challenges facing the industry today.
The Agricultural Insurance System remains a cornerstone of agricultural policy in Spain. It is a tool for risk management, which ensures the viability of farms. Annually, about 400,000 farmers have signed a policy of agricultural insurance with an insured sum of over 11,000 million euros.
Source: MAGRAMA
