The Executive Branch ordered the strengthening of the Guarantee Fund for the Field and Agrarian Insurance (Fogasa) of the Ministry of Agrarian Development and Irrigation (Midagri), through the publication this Tuesday of legislative decree No. 1572, which modifies Law No. 29148.
The device is made official as part of the legislative powers granted by the Congress of the Republic last Wednesday, September 20.
Fogasa is a state program created in 2005, with the purpose of reducing farmers’ exposure to crop losses caused by climate risks. The Government now proposes the modification of articles 2, 3, 6 and part of 4 of Law No. 29148.
In the case of article 2, referring to the purpose of the fund, it is established that Fogasa will provide economic subsidies, up to a maximum amount of S/10 million of the available balances, through direct compensation to small agricultural producers. affected with total loss of their crops or livestock.
“Loss as a consequence of natural, climatic, biological events or other exceptional situations that negatively impacted your agricultural activity, with an intercultural approach, and as long as they have not been compensated by the insurance mechanisms that Fogasa has,” the norm states.
Likewise, specifications are made in article 3 regarding the use of Fogasa’s intangible resources, intended to cover the expenses required by the following activities:
- The administration of trusts.
- Carrying out studies related to agricultural insurance.
- Implementation of computer systems for risk management.
- The dissemination of insurance mechanisms at the national level.
- Operating expenses linked to the operation, training, improvements and innovations of agricultural insurance.
- Economic subsidies up to a maximum amount of Ten Million Soles (S/ 10,000,000.00), including its operating expenses, from the available balances of Fogasa.
For article 4, referring to the functions of the Fogasa board, it is determined that, from now on, it must approve the carrying out of studies related to agricultural insurance, implementation of computer systems for risk management and the dissemination plan of the assurance mechanisms at the national level.
Likewise, it will be in charge of studying the operating expenses linked to the operation, training, improvements and innovations of the agricultural insurance financed by the fund, and approving financial subsidies aimed at the benefited small agricultural producers.
Finally, article 6, on the administration of the fund, makes the necessary modifications so that the changes in article 3 can be adequate for the administration of Cofide, the bank on which the delivery of resources depends.
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