What is agricultural insurance?
Agricultural insurance is a type of service that offers Rural Producers protection against losses resulting from weather phenomena and adversities that affect crops. They are provided by insurers or through Federal Government programs. The objective is to protect the producer from any type of damage that may occur in their crops.
The “premium” is the amount paid by the rural producer for contracting insurance, as a way of transferring production risks to the insurance company. The premium calculation takes into account information such as culture, region, productivity, grain price, etc. and vary according to each insurer.
What is the importance of contracting agricultural insurance for soybeans?
In years of climatic events such as La niña or El niño, for example, the planting rhythm, crop development and even the harvest result can be affected, not having the performance expected by the producer. Agricultural insurance has the objective of reassuring the producer that, if any adverse weather occurs and his production is affected, he will not suffer a crop failure. Insurance can be seen as any input from the crop, planned in the pre-harvest by the producer, in order to guarantee the success and continuity of rural activity.
Bearing in mind that agriculture is an activity that involves a large number of risks, having the possibility to guarantee security about one of the main factors that affect production, which is the climate, is a great way to reassure the producer and let him comfortable to focus on other areas of agricultural production. In addition, the producer can also count on the government subsidy for the payment of part of the value of the agricultural premium. It is worth mentioning that the granting or not of the benefit will depend on the amount of federal resources available at the time.
What does agricultural soy insurance cover?
Soy insurance coverage covers the life of the plant, from emergence to harvest and can be divided into two distinct categories:
– Named risk: where the insurer covers risks presented in different coverages, with the possibility of contracting only the coverages of greatest interest. The most common are hail and/or frost and/or fire.
– Multi-risk: where the insurer covers losses caused by various weather risks in a single coverage, such as: hail, frost, excessive rain, strong winds, drought, predicted and inevitable flood, fire and waterspout
In the event of an accident, which is the occurrence of a risk covered by the insurance, the producer must immediately inform the insurer, according to the policy of each company. He will receive a visit from an expert from the insurance company to inspect the area and generate the report to request the release of the amount covered by the insurance.
How to buy soy agricultural insurance?
Hiring is done through insurance companies. By contacting an insurance agent you can request an insurance quote and learn about your policy's protections and values. So you can choose which type of insurance best fits the needs of your farming.
You can contact TentosCap, which also works with agricultural insurance and can help you, in a less bureaucratic way, to choose the best modality for you.
