Vice Minister Midagri for Agricultural Insurance: “It will benefit more than 50,000 producers”

The Ministry of Agrarian Development and Irrigation (Midagri) indicates that it will co-finance “Agricultural insurance’ which will benefit more than 50 thousand manufacturers farms affected by heavy rains in the country

This was reported to the RPP by Vice Minister of Family Agriculture and Infrastructure Development Cristian Barrantes, who stated that this insurance had already been published in a ministerial decree and that insurers should have it in a couple of months. “We are also going to work through Agrobanko”:

“This agricultural insurance will encourage a farmer to apply for a loan through financial institutions in order to sow his fields in order to prepare his land,” he said on RPP TV.

“For example, planting a hectare of rice costs between 5,000 and 6,000 soles, and 3.8% of this amount will be insurance. But from this insurance, The state finances 80%, and the manufacturer will pay only 20%. When there is a loss, flood or drought that affects its production, what will happen is that the total cost of producing the product will be recovered,” the vice minister added. economy for all from RPTV.

He specified that the provision of compensation would be based on performance. He added that in the face of a possible El Niño phenomenon, “this insurance will allow farmers to be more protected.” “[¿A cuántos agricultores beneficiará?] At least for over 50,000 producers,” Barrantes said.

Possible bonus in case of rain

When asked about a possible bonus for agricultural producers, Christian Barrantes noted that they are evaluating whether this will be such a measure or financial support.

“We have the Agroperú Fund, which is managed by Agrobanco, as well as another fund called FIFPPA (Fund for the Financial Inclusion of Small Agricultural Producers), which supports Agrobanco in lowering rates,” he said. economy for all.

Similarly, Vice Minister Midagry said these are alternatives so that rain-hit producers can restructure credit to get out of the crisis.

“[¿Es una idea de Ejecutivo-Midagri-Agrobanco?] That’s it. We are mainly working on this for Agrobanko, which finances agricultural producers the most. We will also see some other measure for those who are boxes,” he added on RPP TV.

Losses due to rain

He Vice Minister of Family Farming and Infrastructure Development reported in RPP News that about 16,000 hectares of crops were lost due to rains after the passage Cyclone Yacu in Peru.

“A very important issue is the issue of irrigation canals, we have about 443 kilometers of affected canals, which usually suffer from clogging caused by all the waterways that come from the north,” he said.

He clarified that if the crops are early maturing crops, they can be sown again, but the irrigation canals must be renewed. In addition, Cristian Barrantes said that producers who own less than 50 hectares of land are insured for 2 million hectares.

“In the event of an emergency of this type, producers should contact the agricultural departments, which are subordinate to the regional government. They notify the insurer, and he applies, collects information and forms a payment,” he said. .