Government releases more budget resources for rural insurance

With the increase in the movement and commitment limit made to the Ministry of Agriculture, Livestock and Supply in October, the value of the rural insurance premium subsidy increases from R$370 million to R$420 million in 2019. The allocation of these resources in Rural insurance modalities will be defined at a meeting of the Interministerial Committee of the Rural Insurance Manager on October 25th.

In March of this year, there was a contingency of resources to cover expenses with the Rural Insurance Premium Subsidy Program (PSR). Decree No. 9.741, of 29/03/2019, amended Decree No. 9.711, of 15/02/2019, established the budgetary and financial programming of the Executive Branch for the 2019 financial year and limited the budget for the PSR, providing for a blockade of R$70 million, meaning the available budget was R$370 million for 2019. However, in October R$50 million was released to be applied to the insurance program.

For Pedro Loyola, director of the Risk Management Department at Mapa's Agricultural Policy Secretariat, the unlocking of these resources indicates the government's prioritization of agricultural risk management policies. According to him, there is still R$20 million from the 2019 budget that is being sought to be released, which would cover the entire budget of R$440 million.

“For next year, a resource of R$ 1 billion is planned for the PSR, which still depends on the approval of the 2020 Annual Budget Law Project (PLOA) that is being processed in the National Congress”, he adds.