Area covered by rural insurance in 2020 already exceeds 10 million hectares

Until October this year, 10 million hectares were insured with the support of the Rural Insurance Premium Subsidy Program (PSR), surpassing the year 2014, when an insured area of ​​9,9 million hectares was registered, until then the year with the highest brand, according to a survey by the Ministry of Agriculture, Livestock and Supply (Mapa).

Minister Tereza Cristina has highlighted the Ministry's commitment to risk management policies and the "commitment to disseminating the importance of taking out rural insurance among producers and the positive results obtained in this regard”.

In addition to the insured area, other numbers also indicate the advancement of this risk management instrument among producers. Around R$680 million was used in premium subsidy, which has financially helped producers to contract around 149 policies to date, with a total insured value of R$33 billion.

The Secretary of Agricultural Policy, César Halum, states that these numbers should still grow, considering that hiring at the end of October and beginning of November will be calculated. “Mapa will publish in December the final results of 2020 of the agricultural policy with rural insurance, which are already records in the history of the PSR”.

PSR 2020 – Main crops and contracted activities (policies and insured area)

Activities	Contracted Policies	Insured Area (ha)
Total	149.412	10.022.123,54
Soybean	68.862	5.895.114,66
Corn 2st Harvest	29.956	2.227.673,85
Wheat	13.317	796.350,24
Grapes	9.026	33.890,64
Corn 1st Harvest	6.225	281.950,38
Café	4.673	87.670,34
Rice	3.079	159.179,09
Sugar cane	2.992	217.823,69
Tomato	1.676	22.807,21
Apple	1.633	14.925,02
Livestock	1.187	0,00
Onion	1.182	6.604,32
Others	5.604	278.134,10

Activities

Contracted Policies

Insured Area (ha)

Total

149.412

10.022.123,54

Soybean

68.862

5.895.114,66

Corn 2st Harvest

29.956

2.227.673,85

Wheat

13.317

796.350,24

Grapes

9.026

33.890,64

Corn 1st Harvest

6.225

281.950,38

Café

4.673

87.670,34

Rice

3.079

159.179,09

Sugar cane

2.992

217.823,69

Tomato

1.676

22.807,21

Apple

1.633

14.925,02

Livestock

1.187

0,00

Onion

1.182

6.604,32

Others

5.604

278.134,10

Source: Rural Insurance Atlas/MAPA – 27/10/2020

Hiring

Producers interested in taking out rural insurance should look for a broker or financial institution that sells rural insurance policies. Currently, 14 insurance companies are authorized to operate in the PSR. Rural insurance is aimed at producers, whether individuals or legal entities, regardless of access to rural credit. 

The economic subsidy granted by the Ministry of Agriculture can be requested by any individual or legal entity that cultivates or produces species covered by the Program. For grains in general, the premium subsidy percentage can vary between 20% and 40%, depending on the crop and type of coverage contracted. In the case of fruits, vegetables, sugar cane and other types (forests, livestock and aquaculture) the percentage of subsidy to the premium will be fixed at 40%. 

Soybeans, summer corn, bananas, apples and grapes in Pronaf

For producers who are taking out funding credit from financial institutions and are part of the National Family Farming Program (Pronaf), between July and October, there is a pilot project with resources of R$50 million from the PSR to encourage the taking out of agricultural insurance. for soybeans and summer corn (55% subsidy of the premium) and for bananas, apples and grapes (60% subsidy of the premium).

North and Northeast

For grain producers in the North and Northeast regions, the PSR will exclusively allocate R$50 million.