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FMSE

FMSE. A Mutual fund for HEALTH AND ENVIRONMENTAL RISKS IN AGRICULTURE. The purpose. Compensation of economic losses in the event of animal or plant diseases or environmental incidents. A european will. Reform of risk management in agriculture, at the time of the Health Check of the CAP

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FMSE

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  1. FMSE A Mutualfund for HEALTH AND ENVIRONMENTAL RISKS IN AGRICULTURE

  2. The purpose Compensation of economic losses in the event of animal or plant diseases or environmental incidents.

  3. A european will • Reform of risk management in agriculture, at the time of the Health Check of the CAP • Inscribed in Article 71 of the Commission implementing regulation of the Health Check of the CAP - Regulation (EC) No. 73-2009 • Funded under first pillar, and under second pillar in the new CAP

  4. What happened in France? • Consultations between the Ministry and farmer’s organisations; • August 2009: France notified the implementation of the funds • July 2010: A law gives mutual funds a legal basis and makes membership compulsory for the farmers (Agricultural modernisation law) • Publication of 7 decrees and orders from December 2011 to June 2012 • Accreditation of FMSE in September 2013

  5. What’s new? • European funding on sanitary losses • Sharing responsibilities between farmers, state and EU • Risk-sharing between all production sectors • Choice for a sustainable compensation policy, rather than crisis management.

  6. FMSE: HOW DOES IT WORK? • A communal section for all farmers • Specialised sections for each production sector

  7. Communal section The communal section: • Compensates losses that don’t specifically fall under a specific section (environmental incidents, polyphagous pests, emerging diseases) • Contributes to the farmers compensation, in addition to their specialised sections

  8. Specialised sections The specialised sections : • Cover the health risks of their production sector • Deal with the compensation claims of their members • Contribute to their compensation

  9. The fund’s resources • The communal section raises a contribution from all farmers (20 € per year, called by the MSA) • Specialised sections raise contributions from their own members (voluntary contributions, CVO, mandatory contributions). • 65% of compensation expenseswillberefunded by State

  10. 2013/2014 (35% minimum) FMSE : 10M€ Specialised sections: 7M€ Repayment on 65% of expenses by public funds 31 M€ 75% Europe + 25% French State

  11. Risks that may be covered All diseases subject to compulsory control measures • Animal diseases on OIE list and on appendix I of 2009/470/CE Council decisionon expenditure in the veterinary field • Plant’spestslisted by 2011 french ministerialorderthatrefers to A and B appendixes of Council Directive 2000/29/EC on protective measures against the introduction into the Community of organisms harmful to plants Environmental accidents • Emissions of pollutants from an industrial accident, a road accident or a fire.

  12. Costs and losses that may be compensated by FMSE • Animals or plants death (but not mandatory slaughter) • Yield losses • Commercial losses, in the case of:- restriction or prohibition of circulation or exchange - limitation of grazing areas- restriction of use, or destruction of farm products,- restriction of land use,- change of destination, or decommissioning of production, • Cost of control measures or sanitary treatments

  13. What method to assess losses? • It must be fair and realistic for farmers while avoiding overcompensation. • FMSE established scales, from reference values​​: official scale for climatic disaster, France Agrimer prices scoring , technical institutes references. • When necessary, FMSE appeals external experts (from technical institutes, research centers, certified management centers, insurance companies) .

  14. The Board (executivecomitee?) takes all decisions on compensations Decides on the amount of the contribution, the losses that can be compensated, the compensation rates. Approves the establishment of specialised sections, presents compensation programs Decisions are taken on the advice of specialised sections. • 18 members from agricultural representative trade unions, representing farmers • One member for each specialised section • Animals and plants health organisations (FNGDS, FREDON) • Agricultural chambers (APCA) • Cooperation (Coop de France) -

  15. FMSE today • 3 sections, for corn, potato plant and pig farming • 4 new sections in 2013/2014 : fruits, ruminants, vegetables and tomato for industry, potato producers • Projects for vegetable production, wine production, horse breeding, poultry farming • First compensation programs for 2013 losses : corn chrysomela, sharka (plum pox virus), apple tree fire blight, chestnut-tree gall wasp, citrus tristeza..), ovine catarrhal fever, tuberculosis

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