Several French banks and insurance companies specializing in agriculture have announced plans to begin offering crop insurance for farmers to reduce climate-based risks to their farms.

The National Committee of Risk Management in Agriculture set the terms for the new type of insurance, which is currently offered by Groupama, Crédit agricole, Axa and Aviva. The insurance coverage would kick in with losses of 30% due to climate conditions with a 25% deductible. The government will subsidize up to 65% of the costs of the premium.

A table of indemnities has been set by categories of grassland. For example, a traditional permanent or non permanent pasture would covered for an insured value of 394 $/acre. Artificial pasture with higher yield would be covered for an insured value of 651$/acre.

The plan covers losses from climate-based economic losses that are caused by things like drought and excessive heat, cold or other unfavorable climatic conditions that affect harvests.


Participating insurance companies must commit that the compensation to an insured farmer will never be less than what they would have been compensated in the event of government assistance being dispersed due to natural disaster being declared for their area, creating important minimum standards for climate insurance reimbursement.

This type of climate insurance for farmers is the last part of the Multi-Risk Climate Insurance on Harvests program that was started in 2011. Due to the unique nature of farming and pastures in the field of agriculture, this insurance program had to be more specially tailored and thus took a bit more time to be developed.

Prior to this, more than a third of French agricultural cropland and 20% of French wine production areas were covered by some type of climate insurance. This program now allow farmers to participate in this type of coverage across the nation of France as well and plays a key role in French efforts to reduce the potentially negative effects of climate change.