Midagri evaluates delivery of bonus to farmers affected by Cyclone Yaku

The intense rains in the interior of the country have affected 52,000 hectares of crops, of which 16,000 are already lost, said Christian Barrantes, Vice Minister of Development of Family Agriculture and Infrastructure of the Ministry of Agrarian Development and Irrigation (midagri).

Given this, he pointed out that the Government is evaluating a mechanism to support affected farmers. “We are working on a proposal, we do not know if it will be a bonus or financial support because we already have the Agroperú Fundwhich is managed by Agrobanco, or Fippa, which helps to lower the interest rates of the credits provided by Banco Agropecuario,” he commented in RPP.

agricultural insurance

On the other hand, the vice minister also explained that Midagri will co-finance the Agricultural Insurance that will benefit to more than 50,000 producers farms affected by Cyclone Yaku.

“What this agricultural insurance will facilitate is that, When the farmer asks for a loan to sow his land, he pays a premium of 3.8% of the total amount of his crop”he mentioned.

As an example, he cited that a hectare of rice costs between S/5,000 to S/6,000 to install and, of that sum, 3.8% would be said protection. “But of that insurance, the State finances 80% and the producer will only pay 20%. When a loss, flood or drought occurs that affects their production, what will happen is that they will be refunded the full production cost of the product,” he stressed.