The National Agricultural Credit Committee (CNCA in the Spanish acronym) has approved the 2017 Annual Risk Management Programme, with a budget of five billion pesos (COP 5,000,000,000) - about USD 1,723,100-, as contained in Resolution No. 3/2017.

These resources, which will be charged to the National Agricultural Risk Fund, administered by the Agricultural Sector Financing (FINAGRO), will be used to subsidise agricultural insurance premiums (which will account for around 81% of these funds), and so that FINAGRO can develop the promotion programme for agricultural risk management (taking up the remaining 19%).

Agricultural insurance, set up in 1993, is focused on protecting and creating incentives for food production in Colombia and on improving the rural economy, striving to promote the economic organisation of the agricultural sector and protecting agricultural investments.

Thus, agricultural insurance, the premiums for which will be subsidised using the funds earmarked by the CNCA, will be available throughout the country, giving cover to those producers who insure the entire production area of a single crop in one plot, when this is included in the Agricultural Risk Management Plan.

Subsidies for the farming insurance policy cover, in principle, up to 60% of the net premium, but can rise to as much as 80% for small producers and 70% for medium and large producers when i) the crop or insured activity is part of the Colombia Siembra [“Colombia Sows”] programme; ii) when the crop or activity has been financed by farming loans granted with rediscounting funds or under FINAGRO-intermediary equivalent conditions, and ii) when the insured producer makes products that are subject to export quotas, tax relief or tariff reduction by third-party countries and in  Colombia’s favour, according to treaties currently in force.

Farming crops, pastures, forest plantations and stockbreeding, fish farming and aquaculture can all be insured using this subsidy.

This agricultural insurance provides cover for damage caused by natural and biological risks affecting the agricultural activities specified.