Supreme Decree No. 004-2024-MIDAGRI: Regulations Governing Peru's Agricultural Guarantee and Insurance Fund (FOGASA)

Supreme Decree No. 004-2024-MIDAGRI, published on May 4, 2024, approves the Regulations Governing the Agricultural Guarantee and Insurance Fund (FOGASA), comprising six titles and 37 articles. The regulation establishes rules for the administration, operation and use of Fund resources through trust arrangements managed by the Development Finance Corporation (COFIDE), pursuant to Law No. 29148 and its amendments. It regulates the financing and cofinancing of agricultural insurance premiums covering crop production, livestock and forestry activities; eligibility conditions for insured parties and beneficiaries; procedures for selecting and contracting insurance companies; and supervision, monitoring and evaluation mechanisms. It also provides for financing studies on agricultural insurance, information systems for risk management, outreach activities and operating expenses. The regulation establishes direct economic subsidies for small agricultural producers who have suffered total losses of crops or livestock due to natural, climatic, biological or other exceptional events, provided they have not received compensation through the Fund's insurance mechanisms. These subsidies are subject to an aggregate ceiling of PEN 10 million, including operating expenses, financed from available FOGASA balances. The Decree also approves Amendment No. 1 to the trust agreement between MIDAGRI and COFIDE and repeals Supreme Decree No. 002-2014-MINAGRI. It does not establish FOGASA but updates its operating framework. Its relevance to PAESA is direct because it regulates financial protection mechanisms for agricultural production against risks and disasters.