€1 billion in drought damage to agriculture: corn, potatoes and sugar beets affected

Hail insurance CEO Kurt Weinberger has identified a climate change-induced “historic drought catastrophe” for farmers. The total damage to agriculture currently stands at €1 billion, the agricultural specialist insurer announced. Hail insurance will cover losses amounting to approximately €400 million. The drought is affecting all of Austria and all crops, particularly grassland, corn, potatoes, sugar beets, pumpkins, and soybeans, but also, in some regions, grain.

If the high temperatures persist until the end of August and rainfall fails to materialize, then “the extent of the damage will clearly increase,” said the hail insurance CEO at a press conference in Vienna on Monday.

Higher Drought Damage Due to Human-Caused Climate Change

According to hail insurance, 80 percent of arable land and 40 percent of grassland are insured against drought. “The insured farms therefore have a legal right to compensation,” said the hail insurance CEO. “We pay out quickly. We are a reliable partner,” Weinberger emphasized. The payments to farmers are secured by reinsurance policies from the agricultural specialist insurer. The company holds 36 reinsurance contracts worldwide.

Lack of rainfall and several heat waves have led to a record drought in Austria this year. “Human-induced climate change is leading to an increase in damage,” Weinberger stated.

The government and federal states are planning an aid package for farmers.

According to Agriculture Minister Norbert Totschnig (ÖVP), the current drought damage assessment from the hail insurance company is “a key basis” for further decisions by the federal government and the states regarding the planned aid package for farmers. Totschnig is hosting a roundtable discussion on “Drought in Agriculture” on Monday afternoon.