In recent years, climate phenomena have triggered a series of challenges for Brazilian farmers, leaving a trail of significant losses. Both the occurrences of La Nina, in the years 2020, 2021 and 2022, how much of the El Niño in 2023, have severely impacted agricultural production in Brazil. Despite the efforts undertaken through the Rural Insurance Plan, the numbers reveal a worrying reality: there was a drastic reduction in the insured planted area, going from approximately 16.2 million hectares in 2021 to approximately 11.3 million hectares in 2023 , representing a decrease of approximately 30%.
Joaquim Neto, from the FenSeg Rural Insurance Commission, highlighted the need for action in the face of climate phenomena in Brazilian agriculture. Furthermore, Neto highlighted the losses caused by La Niña and El Niño in recent years, affecting the country's producers.
Climate challenges and rural insurance: The struggle of Brazilian farmers
La Niña (2020, 2021, 2022) and El Niño (2023) have caused great losses to Brazilian farmers in recent years, said Neto. Despite the Rural Insurance Plan, there was a reduction in the area and premiums subsidized by the federal government, as emphasized.
According to Neto, the insured planted area fell from 16.2 million ha in 2021 to 11.3 million ha in 2023, a drop of around 30%. Additionally, in 2023, the subsidized premium percentage dropped to around 55%, a drop of approximately 29 percentage points compared to 2021.
Given the worrying forecasts for the year 2024, with the prospect of La Niña bringing the possibility of extreme events, such as frost for winter grain crops and drought for summer grains in the states, it is imperative to highlight the importance of insurance rural. Furthermore, Neto highlighted that this insurance is essential to help farmers mitigate losses in the Center-South, highlighting its relevance in a context of climate uncertainty.
“The supplementation of the subsidy resource to the rural insurance premium for 2024 is necessary, due to the cuts suffered recently”, stated Neto. He proposed R$ 2 billion extra for Rural Insurance in 2024, ensuring support for farmers in the face of weather conditions.
Source: Aline Merladete | agrolink