Amendments guarantee resources for rural insurance subsidies and agricultural defense

The Brazilian Agriculture and Livestock Confederation (CNA) followed, on Tuesday (12), the approval of the Budget Guidelines Law (LDO) by the National Congress with two amendments that will ensure resources for subsidizing rural insurance and agricultural defense .

The CNA's actions, with the support of the Agricultural Parliamentary Front (FPA), made it possible to include amendments to the text, preventing subsidies for rural insurance and agricultural defense from being subject to contingency in next year's budget. The Budget Guidelines Law (LDO) serves as a parameter for public spending and for the preparation of the 2023 Budget Bill. The text now goes to presidential sanction.

According to the Confederation, rural insurance “is one of the pillars of Brazilian agricultural policy, given that agricultural activity is always subject to the effects of climatic adversities”. In this way, the entity assesses, insurance is the most efficient mechanism to compensate the farmer in case of losses resulting from weather problems, “ensuring that the producer maintains his cash flow, pays his financial obligations and remains in his activities”.

In the previous harvest (2021/2022), recalls the CNA, the increase in budget and predictability allowed the Rural Insurance Premium Economic Subsidy Program (PSR) to have 218 thousand rural insurance policies, ensuring coverage of 14 million hectares .

In relation to agricultural defense, which encompasses the plant and animal areas, the non-contingency will enable production security “without interruptions or restrictive measures that cease the supply of national products abroad and domestic consumption”.

“The approval of these amendments is an achievement for the sector, as they prevent the government from restricting resources allocated to the Rural Insurance Premium Subsidy Program and for agricultural defense, ensuring that the amounts that are approved do not suffer subsequent reductions or impediments. ”, highlights the CNA.