Agricultural insurance for energy crops 2026: conditions, prices and what farmers must do

Key data

Farmers and farms that produce lignocellulosic biomass for energy use have had, since November 5, 2026, an updated technical and economic framework for insuring their crops. The Order APA/1165/2026 establishes the rules of the game: what can be insured, what is excluded, how indemnification is calculated and how much the policy costs.

This is not a procedural regulation: it defines concepts that directly determine whether you receive payment in case of loss, such as quantity damage, applicable deductibles and guarantee periods. Knowing them before signing the policy is the difference between real coverage and coverage that doesn't work when you need it.

What does this regulation establish?

The order regulates insurance for agroenergy crop farms within the Combined Agricultural Insurance Plan. Its main contents are:

Insurable productions

The regulation covers both annual and multi-year productions of lignocellulosic species intended for energy use. Among the species expressly mentioned in the regulation are:

• Miscanthus (Miscanthus spp.)
• Poplar in short rotation
• Cereal straw for energy purposes

Express exclusions

Not everything that is grown can be insured under this order. The following are expressly excluded:

• Experimental plots
• Family gardens
• Plots in a state of abandonment

Coverage of irrigation facilities

The regulation allows insurance of irrigation facilities linked to the farm, but only if production is also insured. It is not possible to contract irrigation coverage independently.

Key definitions affecting indemnification

Unit prices and subscription dates

The specific unit prices and subscription deadline dates are included in the annex of the order. Reviewing that annex is essential before contracting, as it determines the actual cost of the policy and the maximum deadline for contracting without losing coverage for the campaign.

Economic and operational impact

The direct impact of this regulation is economic and risk management. Growing lignocellulosic species without adequate coverage exposes the farm to total losses in case of weather events, pests or damage to irrigation facilities.

The elements that most affect the cost and real utility of the insurance are:

• The unit prices in the annex: they determine the premium to be paid. They must be consulted directly in the order for each species and production method (annual or multi-year).
• The applicable deductible: the higher it is, the lower the premium, but the greater the risk assumed by the farmer. The regulation sets the applicable levels.
• The guarantee period: if the loss occurs outside the covered period, there is no indemnification. Knowing exactly when coverage begins and ends is critical in multi-year crops like poplar.
• The obligation to insure production to cover irrigation: whoever wants to protect their irrigation facilities must also contract production coverage, which implies a higher cost but comprehensive protection.

The regulation also applies to the 48th Combined Agricultural Insurance Plan, so its conditions govern policies contracted under that plan.

Who does it affect?

• Farmers and farms that grow miscanthus, short-rotation poplar or cereal straw for energy purposes in Spain
• Farms with irrigation facilities linked to lignocellulosic agroenergy crops
• Farm owners participating in the Combined Agricultural Insurance Plan, including the 48th Plan
• Agricultural advisors and farm managers who process agricultural insurance policies for this type of crops
• Agricultural cooperatives and associations that collectively manage insurance for their members with energy crops

It does not affect experimental plots, family gardens or abandoned plots, which are expressly excluded.

Practical example

A farmer in Castilla y León has 50 hectares of miscanthus in multi-year production intended for a local biomass plant. He wants to insure both the production and the irrigation facilities installed on the farm.

Under Order APA/1165/2026, this farmer can contract a policy covering both elements, but must do so in the correct order: first insure the miscanthus production (multi-year production insurable under the regulation) and, on that basis, add coverage for irrigation facilities. If he only contracted irrigation coverage without insuring production, the policy would not be valid under this regulation.

Furthermore, before signing, he must review in the annex of the order the unit price applicable to multi-year miscanthus and the subscription deadline for the current campaign, as after that date he will not be able to contract coverage for the current cycle.

What should companies do now?

1. Consult the annex of Order APA/1165/2026: locate the unit prices and subscription dates corresponding to your crops (miscanthus, poplar, cereal straw or other lignocellulosic species). This is the most urgent data because it has a deadline.
2. Verify that your plots meet insurability requirements: check that they are not classified as experimental, family or abandoned, as they would be excluded from coverage.
3. Decide whether to also insure irrigation facilities: if you have irrigation and want to protect it, you must also contract production coverage. Evaluate the combined cost against the risk of loss.
4. Review the definitions of quantity damage, deductible and guarantee period applicable to your type of crop: these three parameters determine when and how much you receive in case of loss. Do not sign without understanding them.
5. Contact your agricultural insurance broker or Agroseguro before the subscription deadline set in the annex expires, to formalize the policy with the conditions of the new order.

Official source

Consult complete regulation at official source

Notice: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-23242