Amid discussions on the limitations of agricultural insurance in Puerto Rico, Agriculture Secretary Ramón González Beiró has faced criticism for not taking steps to extend insurance coverage beyond hurricane-induced damages to include losses from storms. This issue came to the forefront following Tropical Storm Ernesto, which caused significant agricultural damage in August. Despite González Beiró's acknowledgment of the need for legislative action to expand coverage, efforts to engage with lawmakers have not materialized.
The Agricultural Insurance Corporation (CSA), operational since 1988, mandates insurance for farmers registered with the Puerto Rico Department of Agriculture or those receiving government subsidies. However, the scope of coverage excludes storm or tornado-induced losses. González Beiró highlighted the necessity for the Federal Crop Insurance Corporation (FCIC) to provide reinsurance mechanisms to support expanded coverage. The FCIC, under the U.S. Department of Agriculture, has not received requests from González Beiró for such policy expansions in the past four years, despite approving other modifications related to coffee and pineapple crop insurance recently.
González Beiró suggested that a special fund by the Puerto Rico Legislature could potentially address the coverage gap. However, this proposal has not been formally presented. The aftermath of Tropical Storm Ernesto underscored the urgency of this issue, with estimated agricultural losses of $23.5 million and a significant portion of plantain and banana crops uninsured. The Department of Agriculture sought emergency funds from the Financial Oversight and Management Board for Puerto Rico to mitigate some of these losses.
The gap in insurance coverage reflects broader challenges in Puerto Rico's agricultural sector, including the high costs associated with expanding coverage to include storm losses. Farmers, aware of these limitations, have expressed frustration with the lack of action to address insurance inadequacies. Legislative leaders have indicated that while there is recognition of the need for policy amendments, substantial progress is unlikely until the next legislative session.
Experts argue that aligning insurance coverage with the climatic realities faced by Puerto Rican agriculture is crucial for the sector's stability and the pursuit of food sovereignty. The current insurance framework, which excludes storm-related losses, discourages investment in comprehensive coverage, leaving farmers vulnerable to frequent weather events. Expanding coverage could increase policy costs but would also enhance the perceived value of insurance among farmers, potentially transforming it from a burdensome cost to a valuable investment in resilience.
