FIDAC: Fund for the Compensation of Agricultural Damages caused by Natural Disasters

The 2018 Finance Law, under the Law No. 66 of 18 December 2017, created a special fund to compensate agricultural damages caused by natural disasters. These include mainly storms, floods, ice, droughts, wind and snow which are not covered by the standard insurance contract provided by insurance companies. The objective is to protect and develop farmer’s resources to cope with climate change. The fund is financed by an annual state contribution of around 30 million dinars, a solidarity tax of 1% of direct and indirect income in the agricultural sector, and a membership contribution of 2.5% of the farmers’ or fishermen’s production costs or the estimated value of production, depending on their choice. The management of the fund has been attributed to the Tunisian Agricultural Mutual Insurance Company CTAMA.