Chamber approves reform of rural insurance.

The Chamber of Deputies approved Bill 2951/24, which reforms rural insurance. The proposal provides for lower interest rates and priority in rural credit operations covered by insurance. The premium will be subsidized by a fund financed with public resources. The matter returns to the Senate due to changes made by the deputies.

The approved text is based on a substitute bill by Representative Pedro Lupion (Republicanos-PR). The report details clauses for the use of rural insurance as collateral for rural loans. The bank may require the fiduciary assignment of rights and indemnities. It may also require the financial institution to be designated as the primary beneficiary in case of a claim.

The fund may receive shares in companies with minority participation from the Union, excess shares necessary for the control of mixed-economy companies, real estate, and other Union assets. The mechanism, called the Catastrophe Fund, was foreseen in Complementary Law 137/10. According to information from the Chamber of Deputies, it has not progressed due to a lack of continuous contributions and regulation.

The proposal allows the fund to be managed by a legal entity with participation from insurance companies, insurance cooperatives, reinsurance companies, companies in the agribusiness production chain, and agricultural cooperatives. The text also allows for public companies, including federal banks.

The substitute bill prohibits the contingency or blocking of expenses related to the subsidy for rural insurance premiums. The budgetary execution of the subsidy also becomes mandatory. The limit is restricted to the amount foreseen in the original annual budget bill sent by the Executive Branch to Congress.

The project allows for the reallocation of resources from the Agricultural Activity Guarantee Program. This measure cannot compromise the operation of Proagro or already contracted operations.

The text also establishes deadlines for claims in agricultural activities. Processing must occur within 15 days of notification by the insured party, when there is no on-site technical inspection. Payment must occur within 30 days, counted from the delivery of documents or the inspection, whichever is more recent.

In 2025, the Rural Insurance Premium Subsidy Program allocated 565,4 million reais to insurance. This amount allowed for subsidies for approximately 3,2 million hectares of crops, or 2,61% of the total temporary and permanent crops in the country.