2023-10-19 00:29:59
An additional R$500 million to cover climate risks in 2023 relieves rural producers in times of crisis
The Minister of Finance, Fernando Haddad, in common agreement with the Minister of Agriculture, Carlos Fávaro, assured this Wednesday (18) that the ministry defends the allocation of an additional R$500 million for the Rural Insurance Premium Subsidy Program (PSR ), still this year. The supplement was requested by the Agricultural Parliamentary Front (FPA) together with entities in the agricultural sector.
The initial budget for agricultural insurance is R$1.06 billion. With the supplementation, it will reach R$1.5 billion. The Ministry of Agriculture has already sent a technical note to the Ministries of Finance, Planning and Budget, as well as the Civil House. The supplementary credit must be approved by these holders, who make up the Budget Execution Board (JEO).
“We will sit down to discuss at JEO. I asked for the demand to be forwarded to the Ministry of Planning, as SOF (Federal Budget Secretariat) was responsible for the reallocation of resources. At JEO, I committed, if the demand arrives, to vote in favor,” said Haddad.
President of the FPA, federal deputy Pedro Lupion (PP-PR) highlights that the measure is extremely positive for the agricultural sector in the country.
“The allocation of over 500 million for agricultural insurance is extremely positive for the agricultural sector in Brazil. This demand is something we have been asking for for a long time,” he emphasized.
The subsidy program for producers (individuals or legal entities) guarantees coverage of climate risks, such as excessive rain or drought. In practice, the crop is covered by insurance.
The vice-president of the FPA, federal deputy Arnaldo Jardim (Cidadania – SP), celebrated Minister Haddad’s decision and highlighted that more resources are still needed for the PSR and that the bench will work in the Chamber of Deputies on the budget piece for 2024 arrive at a higher value.
“I want to salute Minister Haddad’s decision in common agreement with the Minister of Agriculture, Carlos Fávaro, to be able to rearrange the budget and allocate more resources to agricultural insurance in 2023,” said the deputy, highlighting that “from the moment of construction of the Harvest Plan 2023/24, the sector had emphasized this issue and the path now is to work on next year’s budget piece so that we can reach an even higher number.”
According to the Ministry of Agriculture, the Federal Budget Secretariat (SOF) has already captured the extra value for agricultural insurance. The expectation is that there will be a JEO meeting to define the topic next week.
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