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The Ministry of Agriculture, Livestock and Supply (Mapa) published this Monday the initial amount to be released for the Rural Insurance Premium Subsidy Program (PSR) in 2021 (Resolution No. 81, of the CGSR). Of the total amount of R$ 976 million, provided for in the Annual Budget Law (LOA) approved by the National Congress in April, R$ 693 million (71%) will be released in June. The remainder of the budget (R$ 283 million) is expected to be released in the second half of the year.
R$ 400 million will be made available to producers to take out policies for winter crops, such as 2nd harvest corn and wheat; R$ 200 million for summer crops such as soybeans, 1st harvest corn, rice and beans; R$ 65 million for fruit; R$ 6 million for livestock farming; R$ 1 million for forestry and R$ 21 million for other crops. “With this support from the federal government, it will be possible to encourage the contracting of approximately 115 thousand policies and provide coverage for 7.5 million hectares”, highlights the director of Mapa's Risk Management Department, Pedro Loyola.
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Corn
Of the total resources released as of June, R$ 50 million were allocated exclusively to contracting grain policies in the North and Northeast Regions, with R$ 20 million for corn 1st harvest and R$ 25 million for other grains. This measure, which began in 2019, aims to boost hiring in these regions.
“Insurance contracting is still concentrated in the states of the center-south of the country, it is necessary to increase the offer of insurance in other regions, with the insertion of new insurance companies, creation of new distribution channels, whether in financial institutions, cooperatives, resellers of inputs, in addition to increasing the number of specialized insurance brokers operating in this market”, explains the director.
R$ 50 million will also be allocated for the 2nd edition of the pilot project aimed exclusively at producers included in the National Program for Strengthening Family Agriculture (Pronaf). According to Loyola, this initiative aims to provide this specific audience with better conditions when taking out insurance. “We need to create different incentives for this producer profile to start taking out insurance. Furthermore, in relation to previous years, there will be a greater volume of resources allocated to corn in the winter and summer harvests, as well as in the Pronaf pilot and for the North and Northeast, with the aim of encouraging producers of this crop and mitigating problems supply.”
Climate is the main risk factor for rural production. By taking out a rural insurance policy, producers can minimize their losses by recovering the capital invested in their crops. Since 2005, the federal government, through the PSR, has assisted producers in acquiring rural insurance, paying part of the policy value (premium).
Hiring
Producers interested in taking out rural insurance should look for a broker or financial institution that sells rural insurance policies. Currently, 15 insurance companies are authorized to operate in the PSR. The economic subsidy granted by the Ministry of Agriculture can be requested by any individual or legal entity that cultivates or produces species covered by the Program.
For grains in general, the premium subsidy percentage can vary between 20% and 40%, depending on the crop and type of coverage contracted. In the case of fruits, vegetable crops, sugar cane, coffee and other types (forests, livestock and aquaculture), the premium subsidy percentage is fixed at 40%. The information comes from Mapa's press office.
By: Arno Baasch | Crops & Market
