What is agricultural insurance?
Agricultural insurance is a type of insurance available to rural producers, which includes protection against losses due to weather phenomena or adversities that can affect crops. Agricultural insurance is provided by insurance companies and also receives incentives from Federal Government programs.
Which cultures are insurable?
There are several cultures that are insurable. In the case of grains, the main coverage extends to soy, corn, wheat and rice, in the fruit and vegetable sector, tomato and banana plantations, among others, can be included. The insurance also covers perennial crops such as coffee, sugarcane and forests such as eucalyptus and pine.
What does agricultural insurance cover?
Insurance coverage varies depending on the insurance company chosen. Insurance commonly covers excessive rain, fire, lightning, waterspouts, high winds, cold winds, hail, drought, frost, excessive temperature variations, as well as non-germination and flooding. It is important to keep in mind what are the adversities that the insurance does not cover, such as irrigated areas.
How is agricultural insurance made and what is the cost?
The rural producer interested in contracting agricultural insurance must go to an institution that offers this type of operation, carrying the necessary documents for contracting. It is important to emphasize that each company has its own document kit.
The cost of agricultural insurance varies depending on the region where the crop is located, the crop that the insurance will cover and which adverse events the producer wants to be included in the coverage.
Subsidy in the Rural Insurance Program
The subsidy is government aid to producers, made available in the 2021/2022 Harvest Plan. For 2022, the Subsidy to the Rural Insurance Premium will be R$ 1 billion, implying lower interest rates for the farmer.
However, the subsidy varies for each type of planting and form of insurance contracting; there are still limits for each producer, applied by CPF or CNPJ.
For soy, corn, wheat and rice, the percentage of subsidy at the cost of insurance varies depending on the type of modality contracted. In the case of fruits, vegetables, coffee, sugarcane and other crops, the percentage of subsidy to the insurance premium is different.
However, it is important to contract agricultural insurance well in advance to benefit from the subsidies. Producers who hire first have a greater chance of receiving government support.
Conclusion
Farm insurance not only provides financial security for farmers, it also highlights a secondary but equally important advantage: emotional peace of mind. More than ever, we experience periods of uncertainty. For this reason, it is important to know the possibilities of support and to be aware of the risks.
