Insurance companies are open to negotiating payment for rural grape insurance in RS

After dialogue with the Ministry of Agriculture, Livestock and Supply (Mapa), the companies responsible for agricultural grape insurance in Rio Grande do Sul were open to negotiating the payment of policies with local producers. The ministry met with insurance companies after the production sector expressed concern about farmers' ability to pay.

Winegrowers in Rio Grande do Sul have started to receive payment slips for the second installment of agricultural insurance, but they claim payment difficulties due to large crop losses caused by excessive rain, frost and hail in the region.

In recent weeks, Mapa has received representatives from insurance companies and producers in order to open a communication channel and look for a viable solution. During the meeting, the two companies that operate in the region demonstrated their willingness to negotiate with farmers to pay in installments or extend payments.

Last year, Mapa implemented 100% of the budget foreseen for subsidizing rural grape insurance, which was R$20 million, serving 5.356 producers across the country. Rio Grande do Sul received 63% of the total, equivalent to R$12,6 million, with 4.209 farmers covered.

The amount of R$20 million for grapes was defined in August 2015 through a resolution by the Interministerial Rural Insurance Management Committee, published in the Official Gazette of the Union.

On November 6, 2015, Mapa published a statement aimed at rural producers and the market in which it stated that rural insurance operations were closed as of that date. The document states that Mapa would no longer authorize any contracting of insurance with federal subsidies.