ELGA Paid €2.1 Billion in Compensation to Producers Between 2020 and 2026

More than €2.1 billion has been paid to Greek producers in compensation and state aid between 2020 and 2026, according to the country’s Agricultural Insurance Organization, ELGA. The payments covered damage to crops and livestock as well as special support programs.

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The compensations paid during the period 2020-2026 exceed 2 billion euros and constitute an intervention of paramount importance to support farming households when they are tested by extreme weather events and other cases of damage.

The organization says the continuing rise in extreme weather and the growing intensity of the climate crisis are driving higher compensation needs. At the same time, revenue from the special insurance contribution remains stable, creating new challenges for ELGA’s financial balance.

ELGA President Andreas Lykourentzos told the Athens-Macedonian News Agency that payments during the period exceeded €2 billion and represented a major intervention to support farming households affected by extreme weather and other damage. He said staff and management managed to transfer compensation and aid quickly, mainly through advance payments after the destructive storms Ianos and Daniel and in other cases.

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The employees of the Organization, with dedication to fulfilling their duties, and the Administration, with determination and substantial initiatives, managed to transfer the compensations and aid as quickly as possible, mainly through the procedure of advance payments.

Of the total €2.1 billion, €1,881,765,977.34 covered crop and livestock losses under ELGA’s insurance regulations. Producers’ special insurance contributions provided €1,069,516,776.69, while €812,249,200.65 came from the regular state budget through ELGA and special programs, including support linked to Ianos and the Daniel-Elias weather events. A further €200,853,954.83 was allocated to programs for state aid.

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Any addition of coverage for new damaging causes entails an increase in the Organization’s revenues.

Lykourentzos said current insurance regulations, together with government support, allow ELGA to maintain solvency and credibility. He also said adding coverage for new causes of damage would require higher revenue, while discussions on strengthening the organization’s income have not produced results. He called for cooperation to address the heavy compensation costs caused by the worsening climate crisis and rejected what he described as cost-free promises from political parties and social partners.

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It is not possible for political parties and social partners to circulate cost-free promises and avoid responsible answers.