State subsidy for the contracting of forestry and agricultural insurance

The Program to Support the Hiring of Silvo-Agricultural Insurance, implemented by Agroseguros since 2000, aims to support silvo-agricultural producers through a subsidy that covers, as a base, 40% of the net premium of insurance policies. These insurance policies are designed to mitigate risks associated with climate change, natural disasters and fluctuations in the prices of agricultural products. In some cases, such as with small farmers or in extreme areas, the subsidy can be increased through additional bonuses, reaching up to 98% of the premium. The program includes different types of insurance to cover various areas of agricultural production. Agricultural insurance protects crops and fruit trees against adverse weather events such as droughts, frost, hail and winds, allowing producers to recover the capital invested in case of damage. Livestock insurance covers the death of cattle, sheep and beekeepers due to accidents, diseases or natural phenomena, guaranteeing the continuity of livestock operations. Forest insurance is also included, which protects pine and eucalyptus plantations against fires, offering compensation in the event of a loss. Finally, the program includes specific coverage for price fluctuations through price coverage insurance, which currently operates for products such as wheat and corn. This insurance allows farmers to ensure a minimum price per metric quintal and, if the market price falls below the insured price on the agreed date, they receive compensation.