Spain faces record agrarian losses as climate shocks surge in 2023
In 2023 the Spanish agricultural insurance system posted unprecedented figures, with premiums surpassing 1,000 million euros more than in 2020, total insured capital reaching 16,918 million euros, and coverage extending over six million hectares. The sector protected six million tons of crops and 416 million animals. The rise in hiring mirrors farmers’ growing need for protection as climate risk intensifies, and policies continue to shield against drought, hail, wind, and rain. Frost events, cascading from drought and heat waves, further threaten crops and livestock across the country.
The Agroseguro group, which coordinates the joint agricultural insurance underwriters in Spain, had already signaled strong growth earlier. With recent weeks seeing claims not yet closed and evaluated, analysts estimate compensations could top 1,200 million euros for 2023, a near 50 percent increase from 2022 and a record year for the industry.
Climate crisis drives agricultural losses to 1.2 billion euros in Spain this year
Sergio de Andrés Osorio, managing director of Agroseguro, remarked that the year produced an extraordinary combination of premiums and insured capital. He noted a nine year streak of record performance, underscoring the sector’s commitment to safeguarding yields against climate events. Production shows notable shifts: vegetables up about 12 percent, fruit trees up roughly 9 percent, citrus and wine grapes each around 3 percent, and whole livestock insurance up about 6 percent. De Andrés highlighted that olive groves experienced a sharp premium increase, approaching a fifty percent rise despite fewer applications. The trend underscores a shift toward broader risk coverage in farming communities.
Financial losses from drought account for the majority of claims, with more than 470 million euros forecast for compensation. The breakdown includes 416 million euros for herbaceous crops, about 29.9 million for wine grapes, 12 million for olive groves, and 9.1 million for vegetables. Hail, frost and fire also contributed meaningful impacts across the sector.
The farming and livestock community has long acknowledged climate change as a direct influence on yields and profitability. The move toward alternative products is underway, though progress is gradual. A leading agricultural union’s president noted the adaptation process during a recent presentation on drought effects in Catalonia, emphasizing that resilience investments are becoming a central concern for growers.
Looking ahead to 2024, industry leaders expect a more insured rural Spain, driven in part by coordinated efforts from the Ministry of Agriculture, the State Agricultural Insurance Corporation, regional administrations, and the Insurance Compensation Consortium. The general manager of Agroseguro expressed cautious optimism: while the 2023 accident rate was exceptionally high, he believes the system can remain solvent and that the sector will recover, aided by continued technical work to protect farmers and ranchers against ongoing climate volatility.
Across Spain, rural communities are recalibrating risk management strategies as climate realities persist. The year 2023 has prompted a reimagining of how to balance productivity with resilience, ensuring producers can weather storms while maintaining food supply and livelihoods. The dialogue among policymakers, insurers, and farmers continues to chart a path toward sustainable farming under a warming climate.