The Mutualité Sociale Agricole (MSA) is the specific social protection scheme for farmers in France. It plays a crucial role in the lives of farmers, farm workers and their families, providing comprehensive social cover. Understanding how it works is vital to the success of your plans to set up in farming.
The MSA is a single organisation that manages all branches of social security for the agricultural sector: sickness, maternity, invalidity, accidents at work, retirement, family benefits, as well as the collection of social security contributions. This global approach enables the MSA to offer its members a one-stop shop, simplifying their administrative procedures.
In addition to its social protection missions, the MSA is actively involved in the development of rural areas. It offers occupational medicine, occupational risk prevention and occupational health and safety services tailored to the specific needs of the farming sector. The MSA also plays an important role in health and social action in rural areas, offering assistance and services to improve the quality of life of farmers and their families.
Membership of the MSA is compulsory for anyone engaged in farming in France, whether as their main or secondary occupation. This membership enables farmers to benefit from social protection tailored to their professional situation.
To be affiliated to the MSA as the head of a farm or agricultural business, you need to meet certain conditions, in particular the minimum activity requirement (AMA). This concept was introduced to define a threshold of activity above which a farmer can be considered a professional and therefore affiliated to the social protection scheme for non-salaried farmers.
The AMA can be reached in three different ways:
If one of these three conditions is met, the farmer is considered to have reached AMA and must be affiliated to the MSA as the head of the farm.
It is possible to be affiliated to the MSA as a secondary farmer. This is the case for people who carry out a farming activity in addition to another main professional activity. In this case, membership of the MSA is in parallel with membership of the social protection scheme corresponding to the main activity.
To be considered a secondary farmer, the agricultural activity must represent less than 50% of total working time and generate less than 50% of professional income. Secondary farmers benefit from social protection adapted to their situation, with contributions calculated on the basis of their farm income.
The MSA solidarity contributor scheme is for people who carry out a small-scale farming activity and do not meet the AMA conditions. This status enables them to maintain a link with the agricultural scheme while benefiting from minimum social protection.
Solidarity contributors are required to pay contributions to the MSA, but at a reduced rate compared with farm managers. These contributions entitle them to certain benefits, including vocational training and health and social services. However, they are not covered by the agricultural scheme's sickness, maternity, invalidity and pension schemes.
This status can be a transitional stage for people who wish to gradually develop their farming activity before becoming a fully-fledged farm manager. It also enables retired farmers to maintain a small-scale activity without losing their pension rights.
MSA social security contributions make up a significant proportion of farmers' financial expenses. They help finance their social protection and that of their families. Understanding these contributions is essential for good farm management.
Contributions are called in for farm managers, collaborating spouses, family helpers, etc.
Farmers are required to pay several types of contribution to the MSA, each corresponding to a specific branch of social protection. Here are the most important contributions.
AMEXA contribution
The health contribution covers health, maternity and disability risks. It is calculated on the farmer's total professional income, with a rate that varies according to the level of that income.
For income equal to or greater than 110% of the annual social security ceiling (PASS), the rate is 6.50%.
Below this threshold, the contribution rate is lower and is even abolished below 40% of the annual social security ceiling (PASS).
Family benefits contribution (PFA)
The family contribution (PFA) finances family benefits paid to farmers.
The rate is 0% for income below 110% of the PASS, rising gradually to 3.10% for income above 140% of the PASS.
Industrial accident contribution (ATEXA)
Atexa is a compulsory insurance scheme managed by the MSA. It protects you against the risks of accidents at work and occupational illnesses and their consequences (time off work, health expenses, etc.).
The contribution depends on the branch of agricultural activity (viticulture, forestry, market gardening, crop and livestock farming, company representatives or local insurance funds) and is between €522 and €560 for a principal farm manager.
Old-age contributions (AVI and AVA)
The pension contribution is made up of two parts:
In addition, there is a compulsory supplementary pension contribution (RCO) of 4% on income up to 4 times the PASS.
Training contribution
The vocational training contribution is a compulsory contribution that finances farmers' continuing training. The amount is set each year and is 0.61% of the PASS for 2023.
Social security contributions for farmers
In addition to MSA contributions, farmers are also subject to social security contributions:
These contributions contribute to the overall financing of social protection in France.
The basis for calculating MSA contributions is the farmer's professional income. For individual farmers, this is the farm profits declared to the tax authorities. For companies, the base is made up of the manager's remuneration and part of the company's profits.
Farmers can choose between two options for determining their contribution base:
If your professional income is not known, contributions are calculated on a provisional basis, which will be adjusted at a later date once the income is known.
The choice of base can have a significant impact on the amount of contributions, particularly in the event of major fluctuations in income from one year to the next.
To encourage new farmers to set up, the MSA is offering a scheme to reduce social security contributions for young farmers. This reduction applies for the first five years of farming.
The scheme provides a partial exemption from social security contributions based on the following scale:
To qualify for this allowance, young farmers must meet certain conditions, in particular be aged between 18 and 40 at the time of setting up and have completed an agricultural training course.
This allowance is a valuable aid for young farmers, enabling them to reduce their social security contributions during the critical start-up period. It is part of a wider policy to support setting up in farming, which is essential to ensure the renewal of generations in the agricultural sector.
Farmers' pensions are a crucial issue that deserves particular attention. The agricultural pension system, managed by the MSA, is made up of a number of components designed to provide farmers with an income after they stop farming. Understanding the different components of this system is essential if you are to prepare properly for your retirement as a farmer.
The flat-rate pension forms the basis of the retirement pension for farmers. It is awarded to all farm managers who have worked exclusively or mainly for at least 17.5 years.
The amount of the flat-rate pension is calculated on the basis of the number of validated years of activity. To qualify for a flat-rate pension at the full rate, you need to have validated a full career, i.e. 166 quarters for people born in 1955 or later. The number of quarters required increases progressively for subsequent generations.
The maximum flat-rate pension is set at €3,569.08 per year in 2023 for a full career. This amount is prorated according to the number of quarters validated if the career is incomplete.
It is important to note that the flat-rate pension is subject to the condition that you stop working. However, there are schemes for combining work and retirement, which, under certain conditions, allow you to continue farming while receiving your pension.
The proportional pension supplements the flat-rate pension. It is calculated on the basis of the farmer's professional income throughout his career and the pension points accumulated.
Each year, the contributions paid by farmers enable them to acquire pension points. The number of points acquired depends on the amount of contributions paid, which is itself linked to professional income. The higher the income, the greater the number of points acquired.
When the pension is paid out, the total number of points accumulated is multiplied by the value of the point, set each year by ministerial decree. In 2023, the value of the proportional pension point is 0.3438 euros.
The proportional pension thus reflects the contribution made by farmers throughout their career. It plays an important role in determining the final amount of the retirement pension.
In addition to the basic pension (flat-rate and proportional), since 2003 farmers have benefited from a compulsory supplementary pension scheme (RCO). This scheme aims to improve the level of retirement pensions for farmers.
The RCO also operates on a points system. Contributions paid into the RCO scheme earn supplementary pension points. The amount of the RCO pension is obtained by multiplying the number of points acquired by the value of the RCO point, set at 0.3438 euros in 2023.The introduction of the RCO has made it possible to significantly increase the level of retirement pensions for farmers. It is helping to reduce the gap between agricultural pensions and those from other social security schemes.
It should be noted that measures to increase the value of small farm pensions have been put in place in recent years, in particular with the introduction of a differential supplement of RCO points to guarantee a minimum pension.
Voluntary old-age insurance is a scheme offered by the MSA that allows people who do not meet the conditions for compulsory membership of the pension scheme for non-salaried farmers to make voluntary contributions to build up pension rights.
This scheme can apply to a number of different situations:
Voluntary old-age insurance is available on application to the MSA. Contributions are calculated on a flat-rate basis or on professional income, depending on the insured person's choice.
This scheme offers additional flexibility in building up pension rights, enabling farmers to adapt to a variety of professional situations while preparing for their future pension.
Managing social security contributions and pensions is a fundamental aspect of farmers' working lives. The MSA, as the pillar of agricultural social protection, offers a comprehensive framework tailored to the specific features of the sector.
Understanding the different components of contributions, whether they be sickness, family, pension or training contributions, as well as social security contributions, is essential for optimising the financial management of the farm.
In addition, schemes such as the young farmer's allowance and voluntary old age insurance offer opportunities to reduce costs and prepare for the future with peace of mind.
Finally, the retirement system, although it may seem complex, provides farmers with financial security after their active career. It is therefore crucial for every farmer to inform himself and plan his social protection effectively to ensure a successful transition to retirement.
