Bill would let farm insurance cover farmers' income losses

Automatic summary, not yet reviewed

1. The bill would amend the Combined Agricultural Insurance Law so that agricultural insurance can also cover risks linked to farm income, something not allowed so far because the law only covered damage from natural causes.
2. It would also amend the regulation that develops that law, to include as insurable risks price fluctuations, changes in demand and market access problems that affect farm income.
3. ENESAENESA Entidad Estatal de Seguros Agrarios, a public body under the Ministry of Agriculture that manages the agricultural insurance system. would be tasked with creating a working group to design the calculation methods for these income insurance products, with results to be published within six months.
4. The Combined Agricultural Insurance Plan would have to be adapted to the new law within one year.
5. The law would take effect the day after its publication in the Official State Gazette, except for provisions involving higher spending or lower revenue, which would take effect in the next budget year.
6. The explanatory section states that current agricultural insurance protects against weather or health events but does not cover income losses from market prices, and that a change in EU Common Agricultural Policy rules now allows this type of insurance to be subsidized with national funds.

Who it affects

• Farmers and livestock breeders: They could take out insurance covering income losses from falling prices or market problems, while keeping enrollment voluntary.
• ENESA: It would have to create a working group to design the calculation methods for the new insurance products.
• Farms: Their market risks, such as price and demand fluctuations, would become insurable.

Words worth knowing

ENESA

Entidad Estatal de Seguros Agrarios, a public body under the Ministry of Agriculture that manages the agricultural insurance system.

PAC

Common Agricultural Policy (Política Agrícola Común), the set of European Union rules and subsidies for agriculture.

Plan de Seguros Agrarios Combinados

A plan approved each year that defines which agricultural insurance products exist and on what terms.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries