Insuring 2,500 producers

Although Mexico has the 11th largest economy in the world, the country has struggled to reduce poverty. Three-quarters of the indigenous and rural population live in poverty. Half of Mexico’s GDP is produced by very small businesses, but roughly 80% of them fail during the first years of their existence. In rural areas, agriculture is the main source of income but represents only 4% of the country’s GDP.

Climate factors also have a big impact on agricultural production, and a poor harvest can have disastrous consequences for small producers. While bigger farms in Mexico have enough resources to insure themselves and resist any damage caused during bad years, small producers (who make up the majority of producers in Mexico) cannot afford insurance.

Project overview

This project aims to develop a microinsurance solution for smallholders in five of the country’s poorest states: Guerrero, Puebla, Veracruz, Oaxaca and Chiapas.


– adapt the agricultural-insurance-fund system (which is primarily geared towards medium- and large-scale agriculture) to accommodate small producers;

– use a percentage of the insurance premium to cover the fund’s operating costs;

– provide technical services to producers in order to improve their practices;

– carry out promotional work and review claims;

– develop new products to expand the insurance offer;

– organise forums for discussion and decision-making for producer organisations.

Key figures and results

  • 16 producer organisations are members, and 2,500 producers have been insured;
  • 4,000 ha of crops have been insured against climate risks.

Project's local partners :