📋 Tender Overview
The bill that grants emergency credit to rural producers who were denied rural insurance compensation due to adverse weather events was debated at the Agriculture and Agrarian Reform Commission (CRA) this Wednesday (5). The public hearing was marked by criticism from rural producers regarding the insurance companies criteria. They also pointed out insufficient support from the government and supported the proposed emergency credit.
Author of the request for the hearing (), Senator Tereza Cristina (PP-MS) defended the approval of and classified rural insurance as essential for the stability of the agricultural production chain.
-- In rural insurance, we are still in our infancy in Brazil. In fact, we have credit insurance, not income insurance, which is the next step that the producer needs.
In the same sense, Senator Hamilton Mourao (Republicanos-RS) called for the modernization of rural insurance, while Senator Jaime Bagattoli (PL-RO) lamented that the affected producers are on their knees. Mourao assessed that the increase in extreme weather events has left many farmers unassisted.
-- Many producers, despite complying with all technical and contractual requirements, were surprised by the denial of rural insurance coverage, leaving them outside the sectors protection policy.
Author of PL 1,217/2025, senator Mecias de Jesus (Republicanos-RR) defined that Congress has an obligation to support rural producers in difficulty.
Scarce credit
The president of the Brazilian Rural Society (SRB), Sergio Luis Bortolozzo, stated that the project treats the agricultural sector as a deserved priority. He criticized the scarcity of credit and the high cost of financing for the sector, situations that he considers to be aggravated by the lack of insurance.
-- For this year, the summer harvest is practically covered by agricultural insurance. We are planting the largest harvest in Brazilian history without agricultural insurance, and this is unacceptable.
Technical advisor to the Brazilian Agriculture and Livestock Confederation (CNA), Guilherme Augusto Costa Rios also expressed concern about the lack of crop risk management and the increase in credit restrictions. Rios also cited climate risk.
-- If La Nina (...) is indeed confirmed, for sure, in 2026, those default rates that we saw will increase considerably, as the producer is unprotected.
The executive director of the Brazilian Association of Soy Producers (Aprosoja Brasil), Fabricio Morais Rosa, stated that there are abuses by insurance companies and said that PL 1,217/2025 prevents a financial collapse for producers.
Best practices
The Assistant Secretary for Agricultural Policy at the Ministry of Agriculture, Wilson Vaz de Araujo, highlighted the limited resources for renegotiating rural debts and asked for an analysis of the reasons why producers affected by climate events were not compensated.
-- We would have to have a better characterization of the motivation and why this insurance did not happen, and continue discussing whether something additional is needed to serve these categories of producers.
Advisor to the Economic Policy Secretariat of the Ministry of Finance, Sergio Ferrao also understands that denials from insurance companies need to be analyzed on a case-by-case basis, as there are situations of rural producers who have not adopted the best practices to avoid damage resulting from climate events.
Insurance companies
The president of the Rural Insurance Commission of the National Federation of General Insurance (FenSeg), Glaucio Nogueira Toyama, stated that producers who consider themselves harmed by denied compensation can appeal to the Court and the Private Insurance Superintendency (Susep). He defended, however, the technical requirements involved in taking out insurance.
-- [The requirements] were established so that we could use better products and generate adequate coverage for the producer.
Agencia Senado (Reproduction authorized upon citation from Agencia Senado)
