Drought, damage to agriculture for 19 million francs (cross-border guide)

Context

In a nutshell

• Estimated agricultural damage of at least CHF 19 million.
• About 1'100 companies have already submitted reports.
• Summer crops heavily affected by water shortages.
• The Confederation boosts support for insurance premiums from 2025.

Key facts

• What: Drought Insured Damage
• When: Data collected up to 6 August
• Where: Switzerland
• Who: Schweizer Hagel
• Amount: 19 million francs
• Percentage: 30% contribution on premiums from 2025

The drought is putting a strain on the national agricultural sector. According to data processed by Schweizer Hagel up to 6 August, estimates indicate insured damages amounting to at least CHF 19 million. This figure, already significant, presents a high risk of further increase if the current weather conditions persist without significant water inputs. The official communication, released on Tuesday to the Keystone-ATS agency, underlines that the situation is far from resolved.

Reporting status

Currently, the insurance protects around 2,350 farms against the risk of drought. Among these, about 1,100 have already formalised a claim for compensation for the damages suffered. According to the agency's data, extreme heat is the main cause of about half of the reports received thisyear: a share that is clearly above the historical average recorded in past years. Weather forecasts, unfortunately, do not

Operational details

Impact on summer crops

The consequences of the prolonged water deficit are mainly reflected in seasonal productions. Among the types of vegetation most affected are corn, potatoes, sugar beets and sunflowers. Since most of these crops are still maturing and have not been harvested, the definitive quantification of the total damage for the current year is not yet possible. For many companies, yield losses are already very high, compromising the seasonal economic prospects of numerous farmers operating on Swiss soil.

Evolution of insurance demand

In parallel with the severity of the climate situation, there is a steady growth in the demand for drought-specific weather coverages. The market is reacting dynamically: farms are looking for greater protections to mitigate the risks related to increasingly frequent climatic events. The Federal Office of Agriculture has confirmed that, for the current year, there is an increase of about 10% in the number of companies that have chosen to insure against these risks.

This scenario highlights how risk management has become a structural component of modern agricultural business. The transition to more comprehensive insurance protection is supported by federal policies aimed at stabilizing an industry exposed to increasing environmental variables.

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Key points

Federal support for insurance premiums

To support farmers, the Confederation has planned a targeted intervention. Starting from 2025, the state will contribute 30% to the insurance premiums stipulated to cover the specific risks of frost and drought. This initiative represents an important step in reducing the financial burden on agricultural businesses, making policies more accessible and encouraging greater adherence to protection systems.

Adherence to reduction measures

According to data provided by the Federal Office for Agriculture, approximately 2,500 companies have submitted a formal request to obtain a reduction in insurance premiums in the first year of application of the system. The adhesion process has become a benchmark for the resilience of the agricultural sector. Companies interested in evaluating their coverage can contact the competent offices or through their reference insurance to verify the necessary requirements to benefit from the federal contribution of 30%.

The procedure involves an accurate analysis of the risks and the signing of policies that explicitly include clauses for drought and frost. Given the increasing climate uncertainty, it is recommended to regularly consult the updates of the Federal Office for Agriculture and the communications of the category associations to stay informed about changes in support policies. Those who wish to delve deeper into the dynamics of economic management and the impact of fixed costs in the Swiss context can consult the cost of living or evaluate their own pension instruments through pension. The stability of the agricultural system remains a priority, and timely access to information is the key to mitigating the negative effects of difficult years like the current one.

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