2023-10-11 05:15:22
The Ministry of Agriculture and Rural Development added 46.2 billion pesos for the Agricultural Insurance Incentive (ISA) through the Financing Fund for the Agricultural Sector, Finagro, to address climate variability events, these are some of the requirements.
The program’s general budget for 2023 amounts to $141.2 billion, which could benefit nearly 84,000 producers.
According to the agricultural portfolio, this is the highest budget that the National Government has allocated in the history of the program.
The idea is that ISA makes it easier for the producer to purchase an agricultural insurance policy that will protect him from risks, whether of climatic or biological origin.
The ISA provides a premium subsidy of up to 95 percent for small, low-income producers; up to 90 percent for a small producer and up to 40 percent for a medium producer.
Which means that if a small producer purchases an agricultural insurance policy with a premium of $1,000,000, they would only have to pay $100,000 plus VAT ($50,000). The remaining $900,000 will be assumed by the National Government.
“From the Government of Change we want to protect our farmers from the climate risks that could be generated by the El Niño phenomenon. This year, we have benefited nearly 54,500 farmers, of which 99% have been small producers. The ISA has allowed them to secure their investments in the countryside so that they can maintain their economic activity and guarantee their livelihood,” explained Ángela Penagos, president of Finagro.
Photo:
Jaime Moreno. EL TIEMPO Archive
How and who can have the insurance?
Producers can ensure agricultural activities such as coffee, cocoa, potatoes, corn, bananas, rice, avocado, cane, among others.
Likewise, livestock activities such as pig farming, poultry farming, bovine and buffalo farming, among others.
The steps to get insurance
1. The farmer approaches an insurance company or financial institution.
2. The insurer validates the farmer’s data and the activity that is intended to be insured.
3. If feasible, the insurer issues a policy, and charges the farmer the unsubsidized portion of the premium and the 5% VAT.
4. The insurer makes the request for the incentive.
5. Finagro validates the request and grants the incentive to the insured producer.
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