Grain producers, mainly in the states of Paraná, Rio Grande do Sul and Mato Grosso do Sul, suffered from the drought that mainly impacted soybean and summer corn crops in the months of November and December 2021. Rural producers were heavily affected and through MAPFRE insurance, they were compensated around R＄350 million for the losses caused by the drought.
The total losses are still being counted, as there is a large area to be harvested, but they have already exceeded forecasts and are considered record losses. “We had two consecutive harvests with historic losses. The producer who did not have any type of insurance had a significant financial impact, forcing some to leave the activity. In harvests like these, the importance of rural insurance for producer risk management becomes even more evident”, comments Catia Rucco Rivelles, Agribusiness Superintendent at MAPFRE.
According to the executive, the company has a contingency plan set up for situations involving many claims in the same period. “Crop insurance is to cover catastrophic events and some crops are expected to be more catastrophic than others. Therefore, it is necessary to have a field structure set up to act in these types of situations”, she explains. “In the cases of claims registered at the end of last year due to the drought in the states of Mato Grosso do Sul, Paraná and Rio Grande do Sul, MAPFRE proved its solidity from the service process to inspections and payment of compensation”, he highlights.
Catia recommends that farmers should pay attention when taking out agricultural insurance, so that they do not miss the appropriate season and know how to choose the ideal product to ensure their crops. “Rural producers should look for a broker specialized in rural insurance as soon as possible, who can support them in case of doubts and in taking out insurance. Still, it is necessary for the farmer to carefully read the insurance proposal, the general conditions of the product and, at the same time, research insurance companies”, he warns.
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