Drought leaves Austrian farmers with 600 million euros in uncovered losses

About 600 million euros in drought-related crop losses in Austria are not covered by insurance, ORF reports, with agricultural damage this year estimated at one billion euros.

In Styria, the total damage is estimated at 183 million euros. Josef Kurz of the Austrian Hail Insurance Association said 140 million euros were caused by drought, 33 million by frost and 10 million by hail, flooding and storms. Eastern and southern Styria were particularly affected, including Hartberg-Fürstenfeld, Graz, Graz-Umgebung and Leibnitz.

Across Austria, hail insurance is expected to cover almost 400 million euros of the drought losses. But standard policies often cover only hail, frost or storms. Insuring against extreme drought requires special, usually more expensive add-ons and a deductible.

Many farmers in Styria choose to take the risk and hope for better harvests in the years ahead. The average farm in the province has about 10 hectares of cultivated land, less than the national average. Farms specialising in a single crop were especially hard hit by the dry, hot conditions this year.