High cost reduces rural insurance uptake, says Fiesp

The latest survey commissioned by FIESP, the Brazilian Agribusiness Trends Monitor, indicates that 36% of the 514 Brazilian agricultural producers surveyed do not intend to purchase insurance for the next harvest. This was indicated by 48% of livestock farmers and 33% of farmers. The argument most used by respondents was the high cost of rural insurance. 

Among the crops, sugarcane and soybeans are those with the lowest prospect of contracting insurance. For the remaining crops studied - corn, coffee and cotton - about half of the respondents showed interest in the service.

Contrary to those who stated that they will not purchase insurance for the next harvest, 39% of producers responded that they intend to purchase the service, 40% of whom are farmers and 35% are ranchers. Those who said they did not know totaled 25%.

Considering the intensification of adverse weather conditions, agricultural insurance has become increasingly essential to avoid revenue losses from agricultural activities.