CNA asks for supplementation of BRL 200 million for rural insurance

The Brazilian Confederation of Agriculture and Livestock (CNA) requested the Ministry of Economy, on Tuesday (22/11), for a budget supplement of R$200 million to implement the Rural Insurance Premium Subsidy Program (PSR).

In a letter sent to the Ministry of Economy and the Civil House, the CNA informed that the release of resources is necessary to guarantee producers of summer grains (soybeans, corn, rice and others) their insured production and maintain society's food security Brazilian and worldwide.

In the document, the CNA reported that the R$990 million in resources authorized for 2022 were released in full by September this year, covering only an area of ​​5,59 million hectares. From January to September, insurance companies paid R$8,4 billion in compensation to producers.

"The intensity of weather events faced by rural producers in recent years highlights the importance of rural insurance in maintaining Brazilian agriculture and in reducing debt renegotiations", says the letter.

The Confederation explained that the prices of the main agricultural inputs, such as fertilizers, pesticides and diesel, increased by 184,9%, on average, from January 2020 to October 2022, as the prices of soy, corn and beef increased by only 80,3, XNUMX% over the same period.

The situation worsens, according to the entity, when the readjustments in the value of the premium by the insurers are analyzed or the reduction of the coverage of the insurance products, which burdens, even more, the production costs, and may cause discouragement to the use of this important tool. of risk mitigation.