Brazil's rural insurance subsidy must become mandatory spending, senators say
Senator Tereza Cristina argued that the current policy fails to stabilize Brazilian agriculture and increase food security. She proposed making government subsidies a mandatory expense rather than an optional benefit.
Tereza Cristina, vice-presidente da Frente Parlamentar da Agropecuária, argued that rural insurance does not solve the problems of modern Brazilian agriculture. She presented Project Law PL 2.951/2024, which aims to modernize legal frameworks by making the subsidy to insurance a mandatory expense. During Senate sessions, she stated the instrument is essential for risk management and protection against uncontrollable climate-related losses. The rural insurance contributes to agricultural chain stability and food security while reducing default risk. Senator Cristina emphasized the measure helps fiscal stability by lowering pressure on the Treasury regarding potential rural debt renegotiations. She warned that without mandatory coverage, government spending in the Safra Plan would be ineffective. Producers might visit offices to renegotiate debts during extreme climate events, damaging budget execution and requiring extraordinary funds for unexpected expenses.
