This post is made in collaboration with EURORISK
At the end of 2023, I discovered that it was possible to insure crops against hail, rainstorms, winter damage, and drought, with PRIA (agricultural payment agency) covering up to 70% of the payment. At first, it sounded too good to be true. Instead of diving into the details right away, I decided to postpone it until spring 2024, thinking the process would clarify itself as I went along. Spoiler: it wasn’t too hard after all. 😄
When I started setting up drought insurance in May 2024, I had no clue what exactly needed to be done. What data should I provide to the insurance company? How does the application process work? Does PRIA even have enough funds? How quickly does the process move?
How did the process look to me?
- Contact Eurorisk to arrange drought insurance. In 2024, drought insurance could be applied for until May 15 for spring crops and May 5 for winter crops.
- Fill out a table where you list land parcels, their sizes, locations, cultivated crops, the average yield of the past three years, planned yield, and the planned price per ton. These details are used to calculate the hectare value and total field value.
- Receive the insurance quote.
- Submit an application to PRIA.
- Scratch your head because the application initially seems a bit confusing.
- Find the application instructions in your email from Eurorisk.
- A bit of thinking later, everything was completed – application submitted on May 21, 2024.
- Pay the insurance premium a few days after submitting the application (you’re not allowed to pay on the same day!).
- On June 9, receive a positive response to your application – yes!
- Submit a payment request on the same day along with the receipt proving the premium has been paid. 😄
- On June 28, 70% of the insurance premium is transferred back to your account.
What did it cost?
In spring 2024, the cost of drought insurance was €29.50/ha. After PRIA’s subsidy, my share was €8.85/ha. Considering today’s expenses, where even just looking at the field can cost more, it seemed reasonable. After all, spring droughts are more of a rule than an exception these days…
And ofcourse, the drought came! And I received an insurance compensation of 28.5 €/ha. Read here!
How did insuring against winter damage go in autumn 2024? That’s a topic for the next post!
