Minister says he is negotiating with the government for more than R$500 million for rural insurance
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The Minister of Agriculture and Livestock, Carlos Fávaro, said this Wednesday (6), in the Chamber of Deputies, that he is negotiating with the government’s economic team an additional R$500 million for the Rural Insurance Premium subsidy program (PSR ).
The announcement was made after the Parliamentary Agricultural Front (FPA) expressed its “irresignation and concern at the decision of the Budget Execution Board (JEO) that denied, once again, the supplementation for this year’s rural insurance budget”.
“The request for R$500 million, which would assist the demands of rural producers, was rejected, and joins many other requests made by the sector so that workers have the basics, to carry out work with dignity”, warned the FPA in a note published on November 24th.
According to the front, the government promised the sector an amount of R$2.5 billion for rural insurance. However, they reported that the “fund was never delivered”. “The successive denials demonstrate, at the very least, a lack of knowledge of how complex the daily life of a rural producer can be to maintain Brazil’s leading role and enrich the national economy, with the generation of income and employment”, highlights the FPA.
At the hearing, the minister informed that the amount reserved in the Budget, R$933 million, has already been consumed, but there is a need for more resources due to the climatic difficulties faced by rural producers and the increase in the price of policies.
“We cannot close the year without contributing at least another 500 million to rural insurance. It is a total priority, and there is no insensitivity from the government regarding this”, said Fávaro.
Rural insurance is assistance provided by the government so that producers can take out a policy to cover risks to the harvest, such as droughts. The budget for this action has been around R$1 billion since 2020.
Deputy Afonso Hamm (PP-RS) defended the end of the contingency of resources reserved in the Budget for the PSR. He is the author of a project in this regard that is being processed in the Chamber (PL 1511/23). “It is very important that we evolve so that there cannot be cuts. Today, crop insurance is make-believe,” he said.
Fávaro participated in a public hearing at the Agriculture, Livestock, Supply and Rural Development Committee. The debate was proposed by the minister, to present the results of the department and strengthen the relationship with parliamentarians.
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