VZCZCXRO0483
RR RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV
DE RUEHFR #7724 3421456
ZNR UUUUU ZZH
R 081456Z DEC 06
FM AMEMBASSY PARIS
TO RUEHC/SECSTATE WASHDC 3661
RUEHRC/USDA FAS WASHDC
INFO RUCNMEM/EU MEMBER STATES
RUEHMRE/AMCONSUL MARSEILLE 1463
RUEHSR/AMCONSUL STRASBOURG 0269
RUEHGV/USMISSION GENEVA 2547

UNCLAS PARIS 007724 
 
SIPDIS 
 
SIPDIS 
 
BRUSSELS PASS USEU FOR AGMINCOUNSELOR 
STATE FOR OES; EUR/ERA AND EB; 
STATE PASS USTR FOR MURPHY; 
USDA/OS/JOHANNS AND TERPSTRA; 
USDA/FAS FOR OA/YOST/MILLER; 
OCRA/ROBERT CURTIS; 
OTA/GREGG YOUNG; 
OFSO/DAVID YOUNG; 
USDA/RMA FOR ELDON GOULD AND JAMES CALLAN 
EU POSTS PASS TO AGRICULTURE AND ECON 
GENEVA FOR USTR, ALSO AGRICULTURE 
 
E.O. 12958: N/A 
TAGS: EAGR ETRD EU FR
 
SUBJECT: Widespread interest in US crop insurance programs 
 
 
¶1. Summary:  James Callan, Associate Administrator, Risk Management 
Agency, USDA, visited Paris November 13 and 14 and met with 
representatives from various agricultural sectors and French 
parliamentarians to discuss the US crop insurance program.  All 
interlocutors expressed strong interest in US crop insurance 
programs as a method of risk management. End Summary 
 
¶2. France has a small, but growing, crop insurance program (see FAS 
Paris GAIN Report FR6070). In anticipation of the 2008 EU CAP review 
and 2013 reform, French policy makers are open to considering new 
methods of providing income support to farmers and reducing the 
financial burden to the state-funded disaster fund. Large French 
insurance companies are also favorable to the crop and income 
insurance market as a potential new market. 
 
¶3. Parliamentarians from both the National Assembly and the Senate 
showed particular interest in US pilot insurance programs covering 
livestock production and forage crop risks as these are already 
underway in France as well. They were also keen to discuss how 
subsidies to U.S. crop insurance programs are classified relative to 
the WTO "boxes". 
 
¶4. Mr. Callan also made a well-received presentation to the Societe 
des Agriculteurs de France, an influential French farmers' think 
tank. The audience included farm leaders, academics, insurance 
industry representatives and journalists. His presentation was 
followed by a lengthy Q&A session indicating the audience's interest 
in this subject. The weekly newsletter, AGRAPRESSE, widely read in 
the French farm sector, published a positive report on Mr. Callan's 
conference. 
 
¶5. FAS Paris will continue monitoring the development of crop 
insurance programs in France as well as policy makers' initiatives 
on these issues. FAS Paris supports bringing more U.S. crop 
insurance experts to France, once the 2007 farm bill is finalized, 
and in advance of the EU's 2008 "health check" of the CAP. 
 
¶6.  Comment: The French, from President Chirac down, are resistant 
to the Commission 2008 "Health Check" initiative. However, at the 
same time, they would very much like to have an insurance program 
that appears more as a safety net. This enticement may help bring 
them to the table. End Comment. 
 
 
Stapleton