Around 2,5 rural properties that had rural insurance operations contracted with support from the federal government will be inspected

The National Supply Company (Conab) is inspecting rural properties benefiting from the Rural Insurance Premium Subsidy Program (PSR). Technicians will visit crops, pastures and forests to check the data declared when contracting rural insurance, such as the insured area, activity and other information contained in the policy. 

In this inspection, which should take place by the end of the year, the Company must inspect around 2.500 properties in all regions of the country. Regularly, the Ministry of Agriculture, Livestock and Supply (Mapa) sends Conab a list of policies benefiting from the PSR that must be audited on-site visit.  

The director of the Risk Management Department of the Mapa Agricultural Policy Secretariat, Pedro Loyola, emphasizes that it is important for the producer to allow access and provide the information requested by technicians. “In case of refusal, the operation may be canceled and the producer may be prevented from participating in the Program in subsequent years”, he explains. 

How supervision works 

The PSR offers farmers the opportunity to obtain financial assistance and take out an insurance policy for their activity at a reduced cost. The objective of insurance is to mitigate the producer's losses, in the event of a crop failure, by recovering part of the value invested in his activity. Program operations must be monitored to verify the information indicated in rural insurance policies and confirm receipt of the federal subsidy. 

Inspection is carried out by Conab due to its capillarity, technical and human resources and its link with Mapa, through the signing of a Decentralized Execution Term (TED). In all inspections, geographic coordinates are marked, photographic records and an inspection report are issued. 

With the policy data provided by Mapa and the instructions in hand, the inspector checks whether the producer has in fact contracted the insurance policy; whether the specified crop was cultivated in the area indicated in the policy, observing its existence or traces; and the receipt of the federal subsidy is confirmed through the financial discount for the acquisition of the insurance policy. 

Hiring 

Producers interested in taking out rural insurance should look for a broker or financial institution that sells rural insurance policies. Currently, 16 insurance companies are authorized to operate in the PSR.

Rural insurance is intended for producers, whether individuals or legal entities, regardless of access to rural credit, who cultivate or produce species covered by the Program.

Since the beginning of this year, the premium subsidy percentage has been fixed at 40% for all crops/activities, except for soybeans, whose percentage remains fixed at 20%. This rule applies to any type of product and coverage, according to the PSR rules, which can be accessed here.

For more information about PSR, do the download of the application. Just log in to Android and para IOS.