Mapa seeks supplementary credit for Rural Insurance

The Minister of Agriculture and Livestock, Carlos Fávaro, through a Technical Note, requested the opening of additional credit to the General Budget of the Union (OGU) totaling R$500 million to grant an economic subsidy to the Rural Insurance Premium.

“We know the importance of expanding resources for Rural Insurance. Since May, we have been asking for the expansion of these resources”, he pondered.

According to technical analysis, claims that occurred in recent harvests (2020 and 2022) - which resulted in around R$16 billion paid in compensation - caused insurers to adjust premium rates. Furthermore, there was significant growth in the average value of rural insurance policies as a result of the increase in prices for the main activities that impact the Rural Insurance Program (PSR).

It is worth mentioning that the recent reallocation of resources from the budget of the Ministry of Agriculture and Livestock (Mapa), a remnant of the Budget Law approved in the last government, as occurred in previous years, was necessary, however, the PSR never ceased to be a priority.

“That is why we are now reinforcing the request to the Ministries of Finance, Planning and Budget and the Civil House in the possibility that, at the beginning of the 4th quarter, this priority can be met”, he explained.

The PSR includes 106 thousand policies, benefiting more than 74 thousand producers in an area of ​​approximately 5,5 million hectares. The technical assessment by the Risk Management Department of the Mapa Agricultural Policy Secretariat also points out that there is a high chance of an impact from the El Niño phenomenon in the 2023-2024 harvest, with a greater risk of drought in the North and Northeast regions, especially in “Matopiba” and excessive rainfall in the South Region.

“These resources are fundamental so that our producers, in times of climate crisis, suffering from bad weather and adversity, whether at one time with a lot of rain or another with drought, as we saw this year, can plant and harvest with the security that the your crop is covered by insurance”, he detailed.