Focus on sheep farming: Agriculture Minister presents Hesse Police”!

Focus on sheep farming: Agriculture Minister presents Hesse Police”!

Agriculture Minister Ingmar Jung (CDU) recently visited the Schmidt sheep farm in Maibach. The aim of his visit was to listen to farmers and understand their challenges. In Hesse, farmers face numerous difficulties, including animal diseases such as bluetongue and African swine fever, extreme weather, theft and rising costs. This issue was also taken up by other players in the industry.

Previous measures taken by the Hessian government to cushion crop failures were only short-term solutions. Jung is therefore planning a long-term approach that sees farmers not only as those affected, but also as active participants in shaping their security. A central component of this new model is the introduction of the “Hessen Policy”, an insurance policy intended to subsidize crop losses caused by frost, floods, drought and hail. Discussions are already underway with the Hessian Farmers' Association and various insurance companies to flesh out this concept.

Long-term solutions for farmers

A particularly important aspect of the new regulation is that farmers who do not take out insurance will be excluded from government subsidies in the future. Jung therefore called on farmers to invest in their own insurance so that they could take advantage of government help in the future. The first applications for the new insurance are unlikely to be submitted until autumn 2026, which underlines the urgency of the situation.

Farmers' challenges are not only a question of financial losses, but also liquidity. Passing the risk on to third parties, such as insurance companies, proves to make sense. Smaller losses can quickly lead to losses that threaten your existence. It is therefore important to choose the right insurance policy that takes both direct and indirect impacts into account in the insurance coverage. This point is also highlighted by the German Agricultural Society (DLG), which underlines the need for a comprehensive risk analysis and effective risk management.

Multi-peril insurance in agriculture

Risk management in agriculture requires farm managers to identify dangers at an early stage and to manage risks effectively. Financial losses can be serious in times of lack of revenue and rising costs at the same time. The DLG reports that income loss insurance is a special form of business interruption insurance that protects against financial damage due to notifiable animal diseases.

A crucial criterion for the success of this insurance is the right choice of insurance company. In the event of a loss, the usual liquidity must be guaranteed. Therefore, comprehensive and truthful information about insurance benefits is necessary and underinsurance should be avoided at all costs.

In summary, the challenges facing farmers in Hesse can only be addressed with a strong focus on risk management and long-term insurance strategies. In this context, the development of the “Hesse Policy” could be a step in the right direction to protect farmers more effectively.

For further information on the special insurance concepts in agriculture, see the DLG guidelines Multi-peril insurance and the report on the Hesse Police.