Frigerio launched a multi-risk insurance to protect corn producers

As part of the Palermo Rural Exhibition, the governor of Entre Ríos, Rogelio Frigerio, announced the launch of the Agricultural Risk Management and Coverage Program, an unprecedented tool in the province aimed at protecting small producers against extreme weather events.

The program, developed in conjunction with the Provincial Autarkic Institute of Insurance of Entre Ríos (Iapser), will have an initial fund of US$ 1,000,000, of which US$ 700,000 will be provided by the provincial government, to offer coverage against droughts and floods.

The initiative constitutes the first multi-risk insurance for corn implemented in Entre Ríos and aims to provide predictability to one of the most important sectors of the provincial economy.

Frigerio highlighted support for one of the province's productive engines

During the official presentation, Frigerio stated that the new instrument responds to a historical demand from the agricultural sector.

"We are announcing the first multi-risk insurance for the agricultural sector, the most competitive sector in the country and in our province. We understood that there was a need that had to be met, and this is the first step for a crucial sector in our economy", he affirmed.

The governor also explained that the choice of corn as the initial crop responds to its strategic importance for production in Entre Ríos.

Corn is the basis of the poultry, dairy, pork, and beef chains, allowing the transformation of plant protein into animal protein and adding value within the province.

Free coverage for small producers

In its initial stage, the program will be aimed at corn producers with farms of up to 200 hectares and will cover an area of 100,000 hectares.

The coverage will be completely free during the first year, a measure aimed at facilitating access to the protection system for small producers.

The scheme includes compensations of US$ 50 per hectare when losses exceed 50% of the expected yield, while the indemnity may reach US$ 150 per hectare when damages exceed 80% of the estimated production.

An agile system to respond to climate emergencies

The Minister of Economic Development of Entre Ríos, Guillermo Bernaudo, explained that the insurance will complement the traditional system of agricultural emergencies.

"When a drought or some problem with production occurs, the entire value chain is affected; that’s why it is essential to keep that functioning", he stated.

The coverage will be activated automatically through objective geolocation parameters along with the official declaration of agricultural emergency by the provincial government.

This mechanism will allow for faster payments and ensure that assistance reaches producers quickly, providing them with working capital to face the next campaign.

A strategic tool for the development of Entre Ríos

From Iapser, its technical manager Bruno Campanero highlighted the impact that the program will have on food production.

"In our province, half of the chickens consumed in the country are produced. It is strategic to support this initiative from the insurance company", he pointed out.

The program will initially operate as a pilot test, although the Entre Ríos government plans to extend the coverage scheme to other crops and agricultural activities in future stages.

With this initiative, Rogelio Frigerio's management seeks to strengthen production, reduce vulnerability to climate change, and provide greater predictability to small producers, consolidating tools that promote the growth of the agro-industrial sector.