The agricultural sector reports damages of over 19 million francs. (cross-border guide)

Context

In a nutshell

• Drought hits Swiss farmers hard. • Damage is estimated at over CHF 19 million.

Key facts

• Swiss Hail insurance protects the agricultural sector against adverse weather conditions. • Approximately 2,350 companies are insured against the risk of drought. • About 1'100 farms have already reported damage. • The Federal Office for Agriculture (FOAG) expects premiums to increase by 10% for the current year.

Lead

Drought is hitting Swiss farmers hard: the Swiss Hail insurance, which protects the sector in case of weather adversity, forecasts damages of at least 19 million francs, with an upward trend.

The drought is causing significant damage to summer crops, such as potatoes, corn, sugar beets and sunflowers. Most of these crops have not yet been harvested, so it is not possible to quantify the overall extent of the damage. However, for some farms, the losses will be large.

According to the Federal Office of Agriculture (FOAG), in the first year of implementation about 2,500 farms requested the reduction of premiums. For the current year, the FOEN expects an increase of about 10%.

Damage analysis

Swiss farmers are particularly affected by drought, especially in regions with a continental climate, such as central and eastern Switzerland. In the Canton of Ticino, for example, drought has caused

Operational details

The drought is causing significant damage to summer crops, such as potatoes, corn, sugar beets and sunflowers, particularly in the Ticino region and the city of Lausanne.

The drought is hitting Swiss farmers hard, and the effects will be felt for a long time. Farmers in the Valais region are already starting to complain about the lack of water for their crops, and the damage is expected to be even more severe.

The Swiss Hail insurance protects the agricultural sector against adverse weather conditions. Approximately 2,350 companies are insured against the risk of drought. About 1'100 farms have already reported damage. According to the Federal Office of Agriculture (FOAG), in the first year of implementation about 2,500 farms requested the reduction of premiums.

This means that farms will have to pay more for drought insurance. However, the FOAG argues that the increase in premiums will be offset by the savings that farms will be able to make thanks to insurance.

Farmers in the Jura region are already starting to complain about the lack of water for their crops, and the damage is expected to be even more severe.

Legislation on drought insurance was introduced in 2018, with the federal law of June 21, 2018, which established the requirements for insurance against atmospheric adversity. The

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Key points

To reduce the effects of drought, it is important to protect summer crops. This can be done using soil conservation and water management techniques. In addition, farms can request the reduction of insurance premiums for the risks of frost and drought.

The Swiss Hail insurance protects the agricultural sector against adverse weather conditions. Approximately 2,350 companies are insured against the risk of drought. About 1'100 farms have already reported damage. According to the Federal Office of Agriculture (FOAG), in the first year of implementation about 2,500 farms requested the reduction of premiums.

This increase is due to the fact that the agricultural sector has been hit hard by drought and weather adversity. According to data from the FOAG, 70% of the farms insured against drought have suffered damages of more than 100,000francs.

In Switzerland, the agricultural sector is an important source of income for many cantons. For example, in the canton of Freiburg, agriculture accounts for 20% of GDP. In the canton of Bern, 30% of farms are insured against drought.

To protect summer crops, farms can use soil conservation techniques such as low-flow watering or covering the soil with leaves or straw. In addition, they can use water management techniques such as irrigation or wastewater collection

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Source: swissinfo.ch