Rain in recent weeks has damaged the crops of some 4,300 farmers in the country. More than half lost all their production.
Agricultural production has been damaged by heavy rains and flooding in recent weeks. Until April 3, the Ministry of Agriculture and Livestock (MAG) registered 8,273 hectares of agricultural land with total loss.
In addition, there are another 7,215 hectares with partial damage. According to the Agricultural Public Information System (SIPA), Ecuador has an area of 1.4 million hectares of permanent crops.
The drama of the rice sector
By type of crop, the most affected are rice plantations, with damage to 7,975 hectares, of which 62% suffered total loss.
However, according to the Rice Research Center, the losses due to the harsh winter would reach 30,000 hectares of rice throughout the country, with a higher proportion in the province of Guayas.
The economic losses would reach USD 50 million so far, says Heitel Lozano, director of the Rice Research Center.
The total cultivated area of rice in Ecuador is 280,000 hectares. In 2022, rice production was 1.4 million tons of paddy rice, the Center calculates.
According to MAG, the second crop with the most losses has been cocoa, with 2,672 hectares damaged in whole or in part.
In third place, banana and plantain crops are among the most damaged, which together add up to 1,878 hectares with total or partial losses.
Damage by province
Altogether, some 4,268 producers have reported damage to their crops due to the rains, and more than half of them had total losses.
Most of the affected farmers are in Guayas, where winter has brought flooding in different areas: only in this province, there are 7,343 hectares affected.
Regarding economic losses, the Ministry of Agriculture explains that there are no final figures yet, since “winter continues.”
The Finance Ministry estimates the losses so far at USD 200 million, including winter and damage caused by the March 18 earthquake.
What does agricultural insurance cover?
Producers can access agricultural insurance from the Ministry of Agriculture and Livestock, which offers coverage for:
- Drought.
- Flood.
- Excess moisture.
- Frost.
- Low temperatures.
- Hailstorm.
- Strong winds.
- Fire.
- Glide.
- Tamponade.
- Ash fall.
- Uncontrollable pests, only for short cycle crops.
- Uncontrollable diseases, only for short cycle crops.
To access agricultural insurance, the producer must be registered with the MAG and cultivate one of the 37 products that are part of the Campo Seguro project, which appear in Ministerial Agreement 095.
In addition, they must present their citizenship card and a copy, the ballot paper, the signed agricultural insurance application and a basic services form (light or water).
The value covered by the insurance depends on the crop and the cost of production established for each type of crop.
For example, for rice, the insurable production cost per hectare is USD 1,250, with the value of the policy being USD 49.25.
Of that value, the amount subsidized by the State is USD 28.13, while the value assumed by the producer is USD 21.12 per hectare.
Registered claims
The MAG agricultural insurance has registered 469 claims due to weather problems in the winter cycle, between November 15, 2022 and March 31, 2023.
This number of claims corresponds to an insured area of 17,671 hectares, for an insured amount of USD 25.8 million.
Of the insured area, there are 1,164 hectares with losses, which in insured amount is USD 1.8 million.
However, the Ministry of Agriculture clarifies that it is still collecting information for the calculation of compensation, since winter continues and there are still no final data on damages.