Framework Insurance Agreement with Subsidies for the Farm Sector

The framework agreement on Insurance with Subsidies for the Farm sector is a collaboration between the Ministry of Livestock, Agriculture and Fisheries (MGAP) and the State Insurance Bank (BSE). Since 2002, these entities have agreed to agreements to provide subsidies for insurance premiums for the farming sector, in accordance with laws 17,503, 17,844, and 18,827, which established the Farm Development Fund (FFG). This policy, executed by the General Directorate of Farms (DIGEGRA) with technical support from the Office of Agricultural Programming and Policy (OPYPA), includes the supervision of the policies issued and the monitoring of insurance penetration by production area. The insurance coverage included in the agreement covered risks such as hail, strong winds, excess water, and civil liability, applicable to various crops and production systems described in the tables of the agreement. To access subsidies, producers must be registered in the relevant national systems, such as the National Fruit and Vegetable Registry, Viticulture Registry, and others. The objectives of the agreement include promoting the contracting of insurance in a sector vulnerable to climatic events, in the Farm sector that covers a variety of crops and production systems, including field horticulture (such as seedbeds and direct sowing of onion, and crops leafy horticultural crops), deciduous fruit crops (such as apple trees, peach trees, pear trees, plum trees, citrus trees, and vineyards in production), and beekeeping. It also includes production structures such as greenhouses and equipment for poultry and pigs.