Renovated agricultural insurance to promote adaptation to climate change in the agricultural sector

In order to provide more accessible options for producers to ensure their crops and animals and at the same time, encourage them to implement measures to reduce the impact of climate change on their production, the National Institute of Insurance and Fundecooperation for Sustainable Development through of its Adapta2 + Program renewed the Agricultural and Livestock Insurance Policy Program, including different discounts for those who incorporate these good practices in their farms.

The initiative took place within the framework of an alliance between the two institutions, which began in 2016, and which included resources from the Adaptation Fund. The Program sought, in a first stage, to improve agricultural and livestock insurance in the country, contemplating the reduction of risks and preventable losses in the policy system.

These discounts are cumulative, so if a producer complies with several standards will apply all the corresponding discounts in the cost of agricultural and livestock insurance to reach a ceiling of 25% (of this total, 15% is exclusive for practices friendly with the environment, there are other additional technical and commercial discounts).

In addition, this insurance seeks to contribute to improving the possibilities of access to a credit, since they have the insurance guarantee before the financial entities.

Better conditions for more sustainable producers. Insurance now incorporates the adaptation component to climate change, so that producers who apply more measures to reduce risks will have better conditions for the protection of their productions.

Among the conditions that can be mentioned is that each measure has a percentage of discount assigned so that, in the case of coffee, for example, a 5% discount is given to coffee farmers who perform monitoring of pests and diseases; 5% to those who incorporate “good agricultural practices”; 10% to those who implement soil conservation; 10% to those who use organic fertilizers and use soil analysis; and 10% to coffee farmers who practice disease control by genetic methods

“In line with the vision of sustainability promoted by the National Insurance Institute and with the purpose of contributing to food security and with the slogan of providing support to the country’s agricultural sector, efforts have been made over the last four years to set up a portfolio of agricultural insurance with up-to-date technical bases and friendly with the environment, “explained Karla Huezo, Head of the Agricultural Unit of the National Insurance Institute.

ccording to Huezo, “this effort has contemplated an improvement in the conditions and characteristics of the products. For this, strategic and technical modifications have been made that have allowed expanding the range of insurance possibilities. As a result of this process, these products have been completely revamped and even modified their names to Agricultural Insurance and Livestock Insurance (formerly called Crop Insurance and Livestock Insurance), after more than 30 years without variations “.

Por medio de un acuerdo con Fundecooperación, quienes contrataron al CATIE para la elaboración de un estudio que determina prácticas agropecuarias que contribuyen a la adaptación y mitigación al cambio climático, se logró incorporar en la suscripción de los seguros la aplicación de descuentos para 12 productos. Incentivando de esta forma prácticas culturales y paquetes tecnológicos que fomentan una agricultura sostenible” concluyó Huezo.

 The producers who can access this renewed insurance are those dedicated to the cultivation of rice, coffee, sugar cane, pineapple, banana, oil palm, cassava, beans and potatoes, as well as producers of cattle, pigs and poultry farms.

About the Adaptation Fund.

The Adaptation Fund is a fund established to finance projects and concrete adaptation programs in countries that are part of the Kyoto Protocol and are particularly vulnerable to the adverse effects of climate change. At the global level, the Adaptation Fund serves as a mechanism to implement the Paris Agreement, the United Nations Framework Convention on Climate Change.

Data of interest.

According to a report by the United Nations Food and Agriculture Organization (FAO) between 2003 and 2013, 83% of crop losses in developing countries were caused by disasters such as floods and droughts, what is transcendental is to promote policies that support producers to protect their crops, but also allow policy systems to be sustainable over time.