Agricultural insurance programs provide relief for climate-driven crop losses

Agricultural authorities in Peru and Mexico are utilizing catastrophic agricultural insurance programs to support small-scale producers facing losses from extreme weather events.

In Peru, the Ministry of Agrarian Development and Irrigation (Midagri) reported that the Catastrophic Agricultural Insurance (SAC) provides free coverage for small producers against damage from rain, frost, and hail. The program offers up to S/1000 per affected hectare, with S/2000 million allocated to cover losses across more than two million hectares. To receive compensation, producers must report damages to regional authorities for field verification.

In Mexico, the Secretariat of Agriculture and Rural Development (Sader) has extended the registration deadline for the Catastrophic Agricultural Insurance program until September 30. This follows severe droughts that have devastated corn crops. Currently, 640 producers have enrolled, with officials aiming to reach at least 850. In Mexico, enrollment in the 2026 Guaranteed Price Program automatically includes registration for the catastrophic insurance program.