Crop insurance premium subsidy (EU CAP)

The crop insurance premium subsidy is the public aid that pays part of the premium on an eligible crop policy. Its current basis is Article 76 of Regulation (EU) 2021/2115 on CAP strategic plans, in effect since January 1, 2023. The article gives member states three risk management tools: insurance, mutual funds, and the income stabilization tool. For insurance, aid can reach 70% of eligible costs if the loss exceeds 20% of average annual production, computed over three years or as a five-year Olympic average. Those figures date from the Omnibus Regulation 2017/2393; the 2013 text required a 30% loss and capped aid at 65%. In France, the aid flows through the EAFRD, the EU rural development fund, with a national share. For 2023, public funding for climate risk management was announced at about 560 million euros: 256 million in state appropriations, 184 million from the EAFRD, 120 million from the levy earmarked for the FNGRA. The stated goal was 600 million by around 2025. The aid is paid to the farmer after the season, on the premium actually paid, and the rate is guaranteed only one season at a time. Insured acreage grew 38% in 2023, then momentum slowed in 2024 and 2025 after years seen as milder. A Banque de France note concludes that the subsidy has a limited effect on uptake. For an underwriter, the aid shapes the product: deductible, reference yield and covered perils are set by the text, and competition plays out on the rest. Not to be confused with national solidarity compensation, paid by the state above the loss threshold.