1 The implementation of CAP in the risk management field Aleksandra Szelągowska, MARD

2 The risk management tools Subsidies to crop and livestock insurance premiums Subsidies to mutual funds Income stabilization tool Anti-crisis tool

3 Limitations of the implementation of aid The requirement of 30% damage to the production of the whole farm Reimbursement up to maximum 70 % for the lost income The individual income loss estimation per farm

4 A proposal of extending the aid -abolition of 30% requirement, or -an incorporation of the supplementary state aid to an agricultural insurance in case of: 10 % damage to the crops or the headage of cattle - 30 % damage to the whole farm

5 Insurance companies’ role in providing the subsidies to insurance premiums On the basis of an overall application submitted by an insurance company, a paying agency should pass the payments from the European Agricultural Fund for Rural Development (EAFRD) intended for subsidies to insurance premiums for the insurance of crops and livestock against adverse weather conditions, directly to insurance companies who signed an insurance contract with a farmer – a form of a public-private partnership

6 The European Financial Stability Facility (EFSF) A form of an reinsurance fund for the member states which implement the aid programmes for farmers who suffered adverse market conditions damage (for example the decrease of agricultural production prices) or adverse weather conditions damage

7 Flat-rate payments: -to the amount of agricultural production sold at prices significantly lower than the forecast prices, -to the area of damaged agricultural crops or to the number of compulsory slaughter of livestock from adverse weather conditions

8 Polish experiences in implementing subsidies to crops and livestock insurance

9 Subsidies From the State Budget *1 euro = 3.9 zloty YearPlan in the budget bill (in million euros)* Execution (in million euros)*

10 The number of insurance contracts

11 The area of insured crops