Even better protection for farmers’ incomes

Credit Agricole Assurances is confirming its position as an innovative insurer by meeting the need to support its farming customers who are vulnerable to weather and market-related events. Indeed, farmers’ incomes are dependent on both crop yields and selling prices. The greater frequency and intensity of climate risks are making their incomes more vulnerable in a context of volatile markets.

This new cover solution is the culmination of a three-year pilot scheme that guarantees a high-quality solution for customers. This innovative offering, transcending the traditional limits of insurance, has been made possible by the synergy between Pacifica and Caceis***. It enables the provision of coverage that is perfectly in tune with the markets, and optimal risk management.

This addition to the Climate Risk Insurance range (Crop Insurance, Hail Insurance and Grassland Insurance), forms part of the Customer Project and strengthens the Climate Risk Insurance development strategy. 

The new Revenue Protection cover is innovative, simple and customisable. It provides security and ensures the continuity of farmers’ operations. It also allows them to contemplate the medium and long-term development of their farms with confidence.

A simple solution

The policy guarantees a level of revenue – chosen by the customer – that is protected against losses due to a climate hazard, a drop in prices or any combination of these two events. If the calculated revenue* is less than the protected revenue**, compensation is paid out for the full amount of the claim.This option is available for soft winter wheat, grain maize and winter rape.

Calculation of compensation

The compensation is equal to the protected revenue minus the calculated revenue. For a practical illustration, please read the case study.

A customisable solution

Farmers are free to choose their level of revenue to be protected: a low level that partially or totally covers their production costs, or a higher level covering some or all of their income. They can also choose the surface area they would like to insure.Protected Revenue cover is subsidised: up to 65% of the premium concerning the proportion of the yield.The options proposed within the Crop Insurance policy remain available: loss of quality, resowing costs and additional harvesting costs.

Benefits of the product 

A subsidised solution, the freedom to choose the surface area and the amount of capital to be insured, compensation for the total amount, reductions for Young Farmers who take out yield coverage, and the opportunity to subscribe to other options.* Calculated revenue: yield obtained multiplied by the average price observed on the reference futures market.** Protected Revenue: revenue that the famer has chosen to protect upon subscription.

*** Crédit Agricole Group subsidiary specialising in financial services