Oct 26, 2009
Brazilian Congress Preparing To Expand Crop Insurance Program
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
The Brazilian Congress is expected to vote this week on a program allocating R$ 2 billion reals to broaden the amount of crop insurance coverage available to Brazilian farmers. Currently, only 3% of Brazilian farmers purchase crop insurance and the Brazilian Minister of Agriculture would like that number to increase to 70% within 20 years. As more Brazilian farmers participate in the program, the amount of funds allocated to Brazil's crop disaster fund is expected to decrease.
Crop insurance in Brazil is relatively new concept and participation in the program has been quite low due to the high premiums and poor coverage. The new program is designed to correct this by boarding the program to include not just row crops, but to also include cattle and forestry operations as well.