Paraná Rural Insurance Program to receive R$10 million in subsidies

The Paraná State Government's Rural Insurance program will receive R$10 million to subsidize rural insurance premiums starting in January. The funds are from the Economic Development Fund (FDE), administered by Fomento Paraná. The program's objective is to mitigate the risk of agricultural activities and reduce agricultural debt.

Managed by the Secretariat of Agriculture and Supply (Seab), this program has already paid more than R$88,6 million in subsidies for 47,1 thousand insurance policies since 2009, when Law 16.166/2009 was approved, which grants a State Subsidy to the Rural Insurance Premium.

“It is very important to help rural producers minimize their losses, reducing risks, with a strong rural insurance program, because we live in an integrated economy. When agriculture does well, it has a direct impact on trade and industry, on jobs, and on people’s income,” says Vinícius Rocha, president of Fomento Paraná.

“Paraná has up to three harvests per year. With insurance, even in the face of adversity, the producer can get back on his feet more quickly and this reduces the impact on wealth generation in the state,” he adds.

The subsidy currently covers 28 crops, including fruit, grains (except soybeans), dairy and beef cattle, and works as a complement to the federal government program. The State of Paraná subsidizes 20% of the policy value and the Ministry of Agriculture and Livestock subsidizes another 20%. The producer must pay only 60% of the policy value. Each producer can contract up to R$4,4 per CPF/CNPJ, per crop or animal species and up to R$8,8 per CPF/CNPJ per calendar year (January to December).

Over the last two years, the disbursement for subsidizing rural insurance premiums has been decreasing, due to the increase in risks involved in production, such as climatic factors, such as excessive rainfall, frost or prolonged drought, considering the planting periods established by the Agricultural Zoning of Agroclimatic Risk (Zarc), and partly due to the reformulation of the legal basis of standards governing the accreditation and contracting of insurance companies, carried out in 2024.

For 2025, according to Francisco Simioni, from the State Coordination of Rural Insurance of the Department of Rural Economy (Deral) of Seab, the procedures are being advanced, with the submission of subsidy proposals to corn and sorghum producers (second harvest), for example, who will begin planting the crop in January. “We believe that the R$10 million already authorized will be consumed quickly, within the current cycle of contracts with insurers. It is possible that additional resources will be necessary for the winter harvest”, he estimates.

According to Simioni, the Rural Insurance Subsidy Program should see a major leap forward from the 2025/2026 harvest onwards, due to the new notice, which should be released in February, for the renewal of accreditation and contracts with insurers, between March and May/2025. The contracts will be in force as long as the State Subsidy Law for Rural Insurance Premiums exists, always linked to the budgets approved by the FDE.

“With this, insurance companies will have to keep their documentation up to date to work with the state subsidy, and we (the State) will be able to work proactively. In other words, as we did with corn and sorghum 2nd harvest this year, we will be able to authorize insurance companies to bring forward the collection of proposals to the planting period of the crops. Later, within the agricultural zoning periods, we will be able to make payments for these proposals, which will be converted into policies quickly, saving time,” he concludes.

fiagro – in addition to subsidizing rural insurance premiums, Fomento Paraná is entering an area linked to Paraná’s agribusiness through an Investment Fund in Agricultural Production Chains - Fiagro FIDC. The fund was announced by Governor Carlos Massa Ratinho Junior to be a type of state Harvest Plan, in which Fomento Paraná will be a shareholder acting as the state’s arm in defining policies for applying resources. It is the first of its kind in Brazil.

The fund was created based on Federal Law No. 14.130/2021 and Fomento Paraná has already received a contribution of R$150 million for its creation. A total of R$350 million will be allocated to this new initiative by the State Government. The forecast is to generate investments in the field that exceed R$2 billion when Fiagro is fully operational, starting in 2025.

The main objective is to offer an alternative to the financing conditions of the Safra Plan and other resources destined for rural credit, which have been insufficient to meet all national and state demand, in order to promote strategic investments to further boost agribusiness in Paraná.

Fiagro should contribute to promoting economic growth, food security, environmental preservation and strengthening rural communities, and can be used for irrigation systems, production expansion, storage, equipment and other lines. It can also be used by the industry that serves the sector, such as manufacturers of tractors, implements and other agricultural machinery.

"Paraná's agribusiness has a great quality: industrialization. This is a path that Brazil must follow. And now with Fiagro, which will have lower interest rates than the Safra Plan, we will take another big leap forward," said the governor at the closing meeting of the Parliamentary Front for Agriculture (FPA), in Brasília.

Suno Asset will be the manager responsible for structuring the new Investment Fund in Agro Production Chains - Fiagro FIDC. The selection was made based on a public call for proposals opened by Fomento Paraná in July.

Belonging to the Suno Group, the asset manager has over R$1,5 billion under its management, of which over R$500 million is invested in agribusiness, and also maintains operations that finance hundreds of producers, in addition to participation by cooperatives from Paraná that are part of agribusiness funds managed by the entity. The fund is expected to start operating in 2025.