Actualidad Colombia

Drive to develop the farming sector

Colombian legislation and regulation

Throughout 2017 and the first quarter of 2018, the Colombian government has been very active in its support of the agriculture and livestock sector, passing regulation and boosting financing for productive programs.

These initiatives include Law 1876, 29th December 2017, Resolution 464/ 2017 by the Ministry of Agriculture & Rural Development, Resolutions 12, 13, 14, 15 & 16/2017 by the National Agricultural Credit Committee and Regulatory Circular P-04/2018 by the Agricultural Sector Financing Fund (FINAGRO). The highlights of these regulations are listed below:

  • Creation of the National Agricultural Innovation System (SNIA), to establish policy, strategy, programs, projects, methodologies and mechanisms to manage, promote, finance, protect and divulge research, technology development and innovation in the agricultural and livestock sector.
  • Introduction of measures to strengthen family farming productive systems, supporting agricultural and livestock programs and sustainable production.

The most important strategies in achieving this aim are: i) encouraging the use of financial services in rural areas to promote the economic development of the farming community and enable agricultural and livestock products to be sold more widely, together with ii) buy-in form microfinance institutions.

  • The National Farming Credit Committee has set the budget for the agricultural loans granted by FINAGRO, estimated for 2018 at USD 4.8 billion, and also the conditions for placing these credits.

Special lines of credit have been created this year for small and medium producers, at advantageous interest rates.

  • Details of the Annual Farming Risk Management Plan, enabling agricultural crops, pastures, forest plantations, together with stockbreeding (including agroforestry) fish farming and aquaculture (including shrimp farming) to be insured under the farming sector subsidy.

Regulation is also being drawn up for farming insurance cover, to protect against the damage caused by natural and biological risks affecting farming, including loss of income.  This includes the disbursement of the corresponding insurance pay-out if an indicator defined in the insurance contract reaches a certain level. The indemnity will be used to compensate affected producers or to set up a disaster fund when the beneficiary of the insurance is a public-sector institution.

  • The drive to make farming credits available to the demobilized, reintegrated and returning population: people who were outside the law but who have laid down their weapons and reintegrated or returned to civil life, and who have certification or accreditation of this from the Operations Commission for Abandoning Weapons (CODA in Spanish) or the Officer of the High Commissioner for Peace, or their representatives.