Agricultural Activity Guarantee Program (PROAGRO): Who Qualifies and What You Get
Learn how this program protects small and medium producers from loan debt if climate conditions cause their crops to fail.
The Agricultural Activity Guarantee Program (PROAGRO) is a protection system designed to help farmers manage the financial risks of farming. It ensures that if a harvest fails because of weather issues, the farmer is not left struggling to pay back their loans.
Who it's for
This program is designed for small and medium-sized producers who have taken out loans to finance their crops.
What you get
If your crops fail due to climate-related issues, this program provides an exemption from your loan repayments. This means you will not be held responsible for paying back the financed amount of the crop that was lost.
What it costs you
To access this protection, you must pay a small percentage of the total amount you borrowed. This fee is paid at the beginning when you first take out the loan.
The catch to know
You cannot wait until the end of the season to report a problem. If your crops are damaged, you must notify your bank immediately to ensure you remain eligible for coverage.
How to apply
- Secure a financing loan for your crops.
- Pay the required protection fee at the start of the loan.
- Monitor your crops for any climate-related damage.
- Notify your bank immediately if a crop failure occurs.