France further cut its estimate for this year’s wine production, putting output below 2024’s historically low level, after summer heat waves and wildfires hit vineyards.
With the grape harvest nearly complete, output is now seen at 36 million hectoliters, the agriculture ministry said in a report from the country’s agriculture ministry. That’s down from a September estimate of 37.4 million hectoliters and 16% below the five-year average. It comes after the worst fires in seven decades caused extensive damage to vineyards and other agricultural land in the southwest.
“The heat wave and drought in August reduced production potential, speeding up the ripening of the grapes while preventing them from swelling,” according to the report. “The result was smaller berries with less juice, which the late September rains failed to make up for.”
The nation is one of the world’s largest winemakers, and the challenging weather marks another blow to the industry after President Donald Trump slapped a 15% import tariff on European shipments to the US earlier this year. Demand is also dwindling elsewhere, with the French government helping farmers uproot vines amid a global wine glut.
Although the expiration is two years away, “insurers and rating agencies closely monitor legislative activity related to [TRIA],” Sartain explained. “Any uncertainty regarding the future of the federal backstop as the deadline approaches will have an impact on the availability and nature of insurance coverage. That, in turn, could send ripple effects through the economy and potentially affect companies’ decision-making processes about hiring and investing.”
If the backstop expires without a replacement, “insurers that are still able to offer terrorism coverage will likely only write coverage for buyers with operations in preferred locations, and could consider increasing prices for other locations,” Sartain wrote. “This would lead to capacity shortfalls for central business districts, at-risk industries, and employers with significant workers’ compensation accumulations, such as office workers, manufacturing facilities, and healthcare and education facilities,” she continued.
Elizabeth Heck, former chair of the National Association of Mutual Insurance Companies (NAMIC), also testified before the subcommittee. She said TRIA provides certainty and has allowed insurers to offer coverage.