Government cuts R$445 million from rural insurance for 2025

The budget for the Rural Insurance Premium Subsidy Program (PSR) was cut by R$445,1 million for 2025. The reduction was made this week by the Ministry of Agriculture (Mapa) as part of the measures to contain R$31,3 billion in federal government expenses, with the aim of meeting the fiscal target. 

In addition to rural insurance, other programs aimed at the agricultural sector also suffered cuts or freezes, such as the Minimum Price Guarantee Policy (PGPM), with R$101 million frozen, and the Coffee Economy Defense Fund (Funcafé), with R$15 million. 

Initially, the PSR budget for 2025 was R$1,06 billion. In May, MAPA had already released R$179,2 million to cover winter crops, fruits, livestock and forests. 

The measure has caused concern in the sector. The Faep System, which represents the Paraná State Agriculture Federation (Faep), the Paraná National Rural Learning Service (Senar-PR) and rural unions, classified the cuts as a worsening of the situation, since the resources available for rural insurance were already considered insufficient.

“These measures are absurd. The resources were already below what the agricultural sector needs. Now, the situation has become even more complicated, leaving rural producers uncovered in the middle of the harvest,” said Ágide Eduardo Meneguette (pictured), interim president of the entity.

The entity emphasizes that it requested R$4 billion for the PSR in 2025, an amount that, according to the Faep System, would be more in line with the coverage needs of the agricultural sector. “Once again, the federal government turned its back on the sector that sustains the economy and on rural producers who generate income and jobs,” concluded Meneguette.

After the blockade, the Ministry of Agriculture should release the schedule for releasing the remaining resources next week.