The Impact of Fires on Small and Medium-Sized Forestry Producers

By Camilo Cornejo Orellana, Agronomist Engineer and Academic of Commercial Engineering at Andrés Bello University

Climate change is here to stay. Rising temperatures, water scarcity, and the human factor have created a "perfect storm" that increases the risk of forest fires in Chile every summer. According to CONAF statistics, when comparing the seasons between 2005 and 2013/2014 with the period from 2014/2015 to 2024, the average occurrence of fires increased by 21%, while the affected area grew by 194%.

Larger-scale fires have also become more frequent. Those exceeding 200 hectares went from representing a 96% increase in the previous period to 260% today, highlighting the magnitude of the problem and its impact on both the public and private sectors.

Although prevention systems, disaster management, and emergency response have been strengthened in recent years, this has not succeeded in reducing the social, environmental, and economic impact of these catastrophes. A clear example was the mega-fire of 2017, which left nearly 6,000 victims and consumed 467,000 hectares of forest, with an estimated socio-environmental cost of US$26.5 million.

To this are added human tragedies that have marked the country. The Viña del Mar fire in February 2024 left 138 people dead, while in January 2026, fires between Ñuble and Biobío caused 21 fatalities and affected approximately 54,000 hectares. These figures reflect a growing risk that not only affects the economy but also the environment and community safety.

The situation is especially complex for small and medium-sized forestry producers, who have suffered significant losses. In the fires of 2017 and 2023, this group was affected across more than 100,000 hectares, also facing delayed support and mostly reactive public policies. In many cases, benefits did not prioritize the forestry sector, which has eroded producers' trust in these emergencies.

Chile has a support tool: the state subsidy for forestry insurance, which covers between 40% and 69% of the premium cost, plus a fixed contribution of 1 UF per policy, with a cap of 80 UF per producer per season. This mechanism aims to reduce economic losses in case of fire.

However, accessing it is not straightforward. Many small and medium-sized producers do not meet the requirements or lack the economic capacity to contract these insurances. Additionally, due to the increase in fires, premiums have risen by up to 200%, and some insurers have tightened conditions or even refused to insure plantations.

Given this scenario, several forestry producers are considering abandoning the activity after a fire, due to the high risk and increasing costs of continuing production. Therefore, the need arises for more direct and targeted public policies to support the recovery and protection of forestry SMEs.

Otherwise, they warn, the exit of producers from the sector could intensify, with negative consequences for the regional economy, rural employment, and the income of thousands of families.

The column in theAcoforag Magazine