The year 2023 presented significant challenges for the Rural Insurance Program (PSR) in Brazil. The Ministry of Agriculture and Livestock (Mapa) managed to fully apply the available resources, subsidizing just over 107 thousand policies for around 70 thousand producers.
The extent of insured crops, reaching 6,25 million hectares, shows the sector's effort to guarantee protection on a significant scale. The amount covered in 2023 still represents considerable coverage, close to R$40 billion. Thus, for each real invested in the subsidy, around R$42 reais were protected.
From the perspective of compensation, until the month of October, insurance companies paid R$2 billion to producers as compensation for their losses, slightly more than double the PSR budget for the same period.
Initially allocated an amount of R$1,06 billion, the PSR had its budget reduced to R$933 million. The challenging scenario was worsened by the rejection of budget supplement requests, leading to cancellations of operations or further burdening producers who bear the full value of the contracts.
Despite these challenges, it is essential to highlight the resilience and dedication of the agricultural sector in facing adversity. Even with a smaller budget, the PSR was able to offer protection to thousands of producers, highlighting the continued importance of the program for the sustainable development of Brazilian agribusiness and for the food and economic security of several municipalities, especially in light of the effects of El Niño.
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