Yesterday, the Executive Branch ordered the strengthening of the Guarantee Fund for the Countryside and Agrarian Insurance (Fogasa) of the Ministry of Agrarian Development and Irrigation (Midagri).
Thus, he established that the Fogasa will provide financial subsidies up to for a maximum amount of S/10 million of the balances available through direct compensation to small agricultural producers affected by the total loss of their crops or livestock.
Said loss must be as a consequence of natural, climatic, biological events or other exceptional situations that negatively impacted your agricultural activity.
The beneficiaries must not have been previously compensated by the insurance mechanisms that this fund has.
The Vice Minister of Development of Family Agriculture, Agrarian Infrastructure and Irrigation, Christian Barrantes, assured that Fogasa will open a possibility of compensation to producers directly. “Especially to those who cannot access to be compensated by insurance due to different problems,” he said.
During his presentation at the Congressional Budget Commission, the official also highlighted that Midagri is currently promoting Co-financed Agrarian Insurance, in which the sector will contribute 80% of the insurance premiumin such a way that the farmer will only pay 20%.
“It is an insurance that is aligned with credits and there are several entities, such as Caja Sullana and Agrobanco itself, that already offer this insurance,” he commented.
Figures
- S/800 is the amount currently covered by Catastrophic Agricultural Insurance per hectare for crops affected by weather phenomena.
- 16,582 hectares were lost due to Cyclone Yaku.
Source: Larepublica
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