Wheat prices continue to rise in the domestic market
Wheat farmers consulted by Cepea remain hopeful of negotiating at higher prices in the coming months
28.01.2020 | 20:59 (UTC -3)
A survey carried out by the Agricultural Policy Secretariat of the Ministry of Agriculture, Livestock and Supply (Mapa) shows that Proagro and Rural Insurance registered 6.719 reports due to drought losses in Rio Grande do Sul. Requests from producers focused on losses in corn ( 3.662), which represented 54,5% of the total communications from Proagro or Seguro in the three most affected crops - corn, soybeans and grapes.
The survey was carried out in the week of January 20th to 24th with insurance companies and using data from the Central Bank of Proagro. Soybeans and grapes totaled 3.057 insurance or Proagro claim notices. The survey only considered warnings due to the drought that is plaguing Rio Grande do Sul for the three main activities with the most requests for insurance or Proagro claims.
Rural credit with insurance and Proagro
In Rio Grande do Sul, there are 103.314 Proagro contracts for the 2019/2020 harvest, with an insured value of R$4,64 billion. Of this total, corn corresponds to 40.917 operations, with insured production of R$1,06 billion; soybeans, 53.794 operations with a total insured value of R$3,1 billion; grapes, 1.355 operations that guarantee an insured amount of R$61,5 million and other crops represent 7.248 operations (insured production of R$412,1 million), according to data from the Central Bank.
proagro
Summary table of insured crops - Rio Grande do Sul - 2019/2020 Harvest
| Product | As to. | Total Insured Value (R$) |
| Corn | 40.917 | 1.060.790.424 |
| Soybean | 53.794 | 3.106.295.627 |
| Grapes | 1.355 | 61.532.540 |
| Others | 7.248 | 412.163.690 |
| Grand total | 103.314 | 4.640.602.281 |
The secretariat's survey, with data from the main financial institutions in Rio Grande do Sul that operate rural credit, also shows that producers contracted Proagro or Seguro Rural as mitigators of the risks of production losses in the event of weather problems.
In Rio Grande do Sul, 41% of the soybean area, 50% of corn and 60% of grapes have risk mitigators from Proagro or Rural Insurance. The corn planted area in the state was 791,4 thousand hectares, with 46% financed with rural credit. Of the 5,9 million hectares planted with soybeans, 38% were financed by rural credit.
The Rural Insurance Premium Subsidy Program (PSR) also supported the contracting of 7.505 policies for grape producers on 27,9 thousand hectares, which represents 59% of the state's area for cultivation.
At Banco do Brasil, for example, of the 50.657 soybean and corn costing contracts for the 2029/2020 harvest, 92% have risk mitigators, 96,7% for corn and 89,5% for soybeans. At Sicredi, 98,12% of the 48.316 corn and soybean credit operations contracted insurance or Proagro and only 1,88% of contracts are without mitigators. In these cases, they are generally producers with other contractual guarantees.
Among the rural insurance contracts, with support from the PSR, for the three most affected crops, 13.262 policies were contracted with an insured value of R$2,19 billion. There were 7.505 for grapes, 5.264 for soybeans and 493 for corn, the latter with large volume contracts at Proagro.
Hiring rural insurance with support from PSR 2019 – RS
Activities | Quantity | Policies | Area | Insured Value | Alumni | Price |
Total corn, | 11.121 | 13.262 | 646.202,45 | R$2.195.222.393,09 | R$162.040.473,44 | R$56.721.527,85 |
Corn 1st Harvest | 434 | 493 | 30.452,56 | R$92.577.762,66 | R$6.511.454,73 | R$2.276.029,80 |
Soybean | 3.806 | 5.264 | 587.885,46 | R$1.392.673.450,18 | R$105.195.658,04 | R$36.831.600,84 |
Grapes | 7.076 | 7.505 | 27.864,43 | R$709.971.180,25 | R$50.333.360,67 | R$17.613.897,21 |
Other cultures | 2.838 | 5.076 | 280.796,79 | R$1.277.949.511,83 | R$101.106.293,75 | R$33.223.255,49 |
Total RS | 13.959 | 18.338 | 926.999,24 | R$3.473.171.904,92 | R$263.146.767,19 | R$89.944.783,34 |
Activities
Quantity
of Beneficiaries
Policies
Included in plan:
Area
Insured (ha)
Insured Value
(LMGA)
Alumni
of Insurance
Price
of the Grant
Total corn,
soy and grape
11.121
13.262
646.202,45
R$2.195.222.393,09
R$162.040.473,44
R$56.721.527,85
Corn 1st Harvest
434
493
30.452,56
R$92.577.762,66
R$6.511.454,73
R$2.276.029,80
Soybean
3.806
5.264
587.885,46
R$1.392.673.450,18
R$105.195.658,04
R$36.831.600,84
Grapes
7.076
7.505
27.864,43
R$709.971.180,25
R$50.333.360,67
R$17.613.897,21
Other cultures
2.838
5.076
280.796,79
R$1.277.949.511,83
R$101.106.293,75
R$33.223.255,49
Total RS
13.959
18.338
926.999,24
R$3.473.171.904,92
R$263.146.767,19
R$89.944.783,34
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