The Minister of Agriculture and Livestock, Carlos Fávaro, said on Tuesday (1st) that the federal government may defrost resources for rural insurance if there is demand for the new crop.
In June, for lack of fiscal space, the Ministry of Agriculture blocked R $ 354.6 million and contingent another R $ 90.5 million for rural insurance, which was seen with bad eyes by the sector.
Fávaro argued that the contingency is momentary and was motivated by the freezing of $ 31 billion in the budget announced by the federal government.
“With the momentary contingency of the budget, we contingent on rural insurance resources. At this time, it was possible to contingent, but at the end of the year, if the new crop demands, we released the resources,” said the minister, during a press conference on the Plan 2025/2026.
Rural insurance is the main public policy for the protection of agricultural production against losses caused by weather events. It reduces the exposure of producers to natural risk that can lead to breaking the crop, such as floods or severe droughts.
Still in the press conference, Fávaro defended again the “modernization” of the program.
“If gaucho producers are indebted and the cause are climate problems, it is because rural insurance is not working properly. If it was, there would be no debt,” the minister argued.
Fávaro also said that increasing government participation in the equalization of policies should not be the only solution to modernize public policy.
He again defended the idea of making rural insurance mandatory for all producers who access credit with interest subsidized by the Safra Plan.
Another alternative presented by the minister, if the current model is not attractive, is the adoption of the so -called parametric insurance – a modality that uses previously defined indicators, such as rainfall or temperature, to automatically determine whether there was sinister and what is the value of compensation. This modality protects the insured from adverse climate events without being tied directly to production.
In this case, hiring insurance could be done periodically.
