Climate multi-risk insurance, compensation for farmers

Moroccan farmers having a climate-risk coverage from the Moroccan agricultural insurance mutual (Mamda) have started receiving compensations since early July 2019. The latter are granted following the deterioration of the climatic conditions during the 2018/2019 crop year.

A budget of 500 million MAD (52 million USD) has been allocated by Mamda for this purpose. As a reminder, only one billion MAD (102 million USD) in compensation was paid to farmers in 2016.

Under the 2018/2019 agricultural season, 40 000 farmers holding 1 million hectares underwrote a multi-risk climate cove. More than 20 000 of them have been compensated. The latter's lands are located in areas declared "a disaster area" by the authorities.

Born from a collaboration between Mamda and the ministries of agriculture and finance, climate insurance protects policyholders against a variety of risks (sand winds, hail, drought, etc.). It covers both cereal and pulse crops.

Contributions are estimated at 28 MAD/hectare (2.9 USD) while compensation is estimated at 615 MAD/hectare (63.8 USD).

The compensation process is based on the communal declaration following an assessment of the land's performance. If the latter has a history of less than 10 years, the parcel is declared a disaster area and compensations are paid to the affected farmers.

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