The Ministry of Agriculture and Livestock (Mapa) released R$210 million in additional resources exclusively for contracting rural insurance in Rio Grande do Sul in the 2nd half of this year, through the Rural Insurance Premium Subsidy Program.
The federal government’s financial aid that supports the purchase of rural insurance will benefit around 22 thousand producers in Rio Grande do Sul, with approximately 31 thousand policies. The ministry also predicts that the rural area insured should reach 1 million hectares and the total value of the insured assets could reach R$9.5 billion.
The release of the extra amount was possible after the ministry changed the distribution of the total budget of R$1.15 billion for the Rural Insurance Premium Subsidy Program (PSR) for 2024, according to Resolution 101 of the Interministerial Management Committee for Rural Insurance, published this Monday (29). And it occurs after the heavy rains that hit the state in the months of April and May.
In a statement, the Secretary of Agricultural Policy at the Ministry of Agriculture and Livestock, Guilherme Campos, stated that the federal government is aware of the problems faced by producers in the regions of the state affected by the climate catastrophe in May.
Hiring
Any individual or legal entity that cultivates or produces species covered by the Rural Insurance Premium Subsidy Program may apply for the benefit.
To hire the service, the producer must look for a broker or a financial institution that sells rural insurance policies, authorized by the Ministry of Agriculture and Livestock in the Subsidy Program. Currently, 17 insurance companies in the state are authorized to operate in the program.
If the rural producer already has coverage from the Agricultural Activity Guarantee Program (Proagro) or Proagro Mais for a crop, the same farmer will benefit from the Rural Insurance Premium Subsidy Program (PSR) in the same area.
These last two federal government programs already guarantee the payment of rural financing for agricultural costs, when the supported crop has its revenue reduced due to climate events or uncontrolled pests and diseases.
Soy
For rural insurance contracts in municipalities in Rio Grande do Sul, the percentage of premium subsidy by the federal government for soybean crops will be 30% in municipalities in a state of emergency and 40% in municipalities in a state of calamity.
For other activities, the premium subsidy percentage will be 50% in municipalities in a state of emergency and 60% in municipalities in a state of calamity in effect until December 31 of this year, in accordance with ordinance 1,802/2024 of the Ministry of Integration and Regional Development.
Rural Insurance
The Rural Insurance Premium Subsidy Program (PSR) offers farmers the opportunity to insure their production at a reduced cost, through financial assistance from the federal government.
By taking out a rural insurance policy, producers (individuals or legal entities) can minimize their financial losses resulting from unpredictable events. These events include adverse weather events, such as drought and floods, and health problems (pests and diseases) to fluctuations in the agricultural market. Rural insurance allows producers to recover the capital invested in their crops, in the cases described, so that there is stability in agricultural income.
