New soy Zarc changes soil classes and crop insurance eligibility

The update to the Agricultural Climate Risk Zoning (Zarc) for soybean cultivation resulted in an important change in the classification of soils, taking into account the availability of water on land. In practice, the new version of Zarc comes into effect in the 2023/24 harvest, impacting crop planning and the insurance market.

Zarc considers risk analyzes based on historical series of climate data and studies on the probability of bad weather events in the field, providing recommendations to guide management. “The inclusion of the Available Water (AD) parameter is intended to improve zoning and detail soil and climate conditions, which will make this risk management tool more accurate”, says Fabio Damasceno, agribusiness director at insurance company FF Seguros.

With the new soil classification, it is crucial that farmers are aware of the types of soil present in their areas to respect the recommended planting window, which will begin in September in the main producing regions. In addition to helping producers mitigate climate adversities, compliance with Zarc is a requirement for taking out agricultural insurance. “Farmers will need to carry out soil analyzes or use the laboratory results of analyzes they already have to calculate the new classification”, warns Damasceno.

New soil classification

Previously, the classification considered the existence of only three types of soil, based on clay content. Now, the new Zarc is based on a more complex formula that considers the percentages of clay, silt and sand, correlated with the Available Water index in the soil.

The new rules determine that soils can be divided into six categories and bring more complexity to planning the 2023/2024 soybean harvest. “The soil classification determines the acceptance or exclusion of insurance, so this change also impacts the formatting of contracts. Soils classified as AD4, AD5 and AD6 are eligible for contracting agricultural insurance, while the other classes are excluded from our policies”, explains the director.

For soybeans, FF Seguros sells Multi-Risk Grain Insurance, with coverage against excessive rain, frost, hail, drought, cold winds, lightning, fires, waterspouts and strong winds. The insurer will assist farmers and partners in this period of transition to the new Zarc, helping to make better decisions about insurance.

“The change may require investments and a period of adaptation because the new Zarc is more complex. However, we believe that all of this will drive improvements in soil management and soybean production, promoting more assertive cultivation windows to mitigate climate risks, in addition to bringing more security to insurance operations”, says Damasceno.

Water availability

The availability of water in the soil plays a fundamental role in the adequate development of soybeans and the maximization of harvest yields. Therefore, understanding the new classification and adapting the cultivation schedule according to the new Zarc recommendations are essential measures to achieve the best productive results.

AD is a parameter that refers to the soil's ability to retain water after gravitational drainage. In other words, it is the volume of water that remains in the ground for absorption by plant roots. This resource impacts the biological activity of the soil and the nutrient absorption capacity that plants will have throughout the harvest.

With adequate soil classification and access to climate forecasts, it would be possible to estimate trends and improve management. For example, with the onset of the El Niño phenomenon, rainfall is expected to be above average in the southern region of Brazil. In this case, areas with AD6 soils, which have a greater water retention capacity, tend to suffer more from the greater volume of rainfall and excessive humidity can flood the roots, which would lead to a lack of oxygen and rot. On the other hand, in AD1 soils, with a lower capacity to retain water, plants tend to suffer more during periods of drought.