The Minister of Agriculture, Luis Planas, is a strong supporter of providing agricultural insurance with greater budgetary amounts. The Ministry and some communities allocate money to the claims, but the bulk contributes
(a “pool” of companies in the industry) that feed on the policies contracted by the producers themselves.
However, when major accidents occur
like the ones that have been going on for three years (drought in 2017, frost in 2018, and cold drop and, subsequently, the blizzard Gloria in 2019, the amount of insurance is skyrocketing to face the millionaire indemnities. , they point out from Asaja, the farmer is faced with a higher cost of the policy when hiring or reducing its coverage.
Unfortunately it is very common that asphyxiated by the prices that it receives below cost, the producer sacrifices or lowers the insurance because he cannot dispense with other necessary inputs such as fertilizers, phytosanitary products, herbicides, diesel, electricity, irrigation, etc. Therefore, one of the requests of the sector is that these increases are passed in a phased manner in the policies.
Very few crops are insured one hundred percent of the crop, only bananas and tobacco. In fruits and vegetables, due to its high added value, depending on the areas there is usually good coverage. However, in the olive grove sector it barely reaches 4% due to its high cost.
Return to precrisis levels
Before the pre-crisis levels, the subsidies allocated by the Ministry were around 300 million euros and are currently around 200 million. If necessary, this item increases with extraordinary credits that must be negotiated with the Treasury and in future budget items.
From Asaja, it is requested that, instead of requesting new items if they are required due to unforeseen disasters, the amount of those already budgeted should be increased to the levels that existed before the 2008 crisis to cover those extraordinary ones. .