Insurance: Demand increases and brings peace of mind to rural producers against losses

One of the main sectors of the Brazilian economy, agribusiness is an activity that does not depend exclusively on rural producers. The climate is an important ally or enemy, which can ruin almost everything. In a year under the strong effects of El Niño (a phenomenon that causes the waters of the Pacific Ocean to heat up and affects climate patterns around the world), farmers and breeders must take precautions and have rural and agricultural insurance as a way to mitigate losses resulting from adverse weather conditions. The product is made available by Sicredi, which is alongside members at all times during the harvest, from planning to marketing the production.

This year, Brazil records climate events that are fresh in memory. Intense, record-breaking rain in the South region, prolonged drought in the North and Central-West regions, below-average rain in the Southeast and Northeast. They directly affect agriculture and livestock and put field workers on alert.

In October, the National Supply Company (Conab) released the 1st Survey of the Country’s Grain Harvest, which indicates the cultivation of 78.784 million hectares in the 2023/2024 harvest, a slight increase (0.3%) in relation to previous season. 317.4 million tons are expected. With this entire area to be sown and the “predictability” of changes in the climate, the recommendation is that the producer takes due care to reduce losses.

Against the effects of the weather, the recommendation is agricultural insurance, which protects the insured’s crops and is intended to cover losses in the activity resulting from phenomena that compromise crop productivity.

In addition to the weather, agricultural activity is also susceptible to unforeseen events such as equipment breakdown and electrical damage, which directly affect property. To protect yourself from these events, rural insurance is the option, as it protects improvements, goods, as well as machinery and equipment. Producers of different sizes, whether small, medium or large, can take out rural and agricultural insurance, depending on their needs.

Sicredi Business Consultant, Danielle Nunes, states that having agricultural and/or rural insurance is important for farmers and breeders to reduce risks in their activity, allowing business continuity even in the face of adversity.

“At Sicredi we offer a range of insurance with coverage that adapts to the needs of members. They are: productivity insurance, cost insurance, forest insurance, hail insurance, coffee plantation insurance, simplified rural insurance and rural multi-risk insurance”,

informs.

In the cooperative financial institution, the contracting of insurance (rural and agricultural) is increasing. Producers are increasingly aware of the need to have someone to count on in the face of adversity and have in this product an alternative to face difficult situations with greater peace of mind. To give you an idea, the balance of the insurance portfolio reached R$391.8 million in September this year, an increase of 41.4% compared to the value recorded at the end of 2019, when it was R$277 million.

When to hire

Danielle advises that insurance to protect the crop must be taken out before planting. “However, for producers who want access to federal subsidy, the sooner they contract, the greater the chances of having up to 40% of the insurance value subsidized by the federal government”, she says when informing that in cases where the producer has an operation of credit for planting, it is recommended that the contract be made together with the credit contract.

“In fact, in these cases it is possible to include the value of the insurance cost (premium) with the credit, allowing the insurance payment to be made together with the harvest, bringing greater convenience to the producer”,

adds the consultant.

It is worth remembering that taking out insurance with a subsidy does not mean a guarantee of access to the benefit, as the subsidy will only be granted if the availability of resources is confirmed and the producer is eligible to participate in the program.

Regarding the insurance of machinery, equipment and improvements, the recommendation is that the insurance be taken out upon delivery or completion of the goods.

About Sicredi

Sicredi is a cooperative financial institution committed to the growth of its members and the development of the regions where it operates. It has a management model that values ​​the participation of its 7 million associates, who play the role of business owners. With more than 2,500 branches, Sicredi is physically present in all Brazilian states and the Federal District, providing a full range of financial and non-financial solutions.

In the states of Mato Grosso, Pará, Rondônia, Acre, Amazonas, Roraima, Amapá, Pará and some cities in Goiás, Sicredi is present in 240 municipalities and has 311 branches, serving more than 1.152 million members.

*With information from consultancy

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