Budget impasse could postpone vote on rural insurance

The president of the FPA (Parliamentary Front for Agriculture), deputy Pedro Lupion (PP-PR), told journalists this Tuesday (26), after a weekly meeting of the bench, that he is still trying to negotiate with the government a way to shield rural insurance in the budget.

According to the parliamentarian, the main impasse in the negotiations is related to the sector's attempt to transform resources from the PSR (Rural Insurance Premium Subsidy Program) into mandatory expenditure, protected from cuts and contingencies throughout the year.

According to him, deputy Arnaldo Jardim (Cidadania-SP) met, this Tuesday, with the executive secretary of the MPO (Ministry of Planning and Budget), Bruno Moretti, to negotiate adjustments to the text.

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"Rural insurance is on the agenda for today. The text is good. There was a request for change from the Ministry of Planning. And this request for change was, for us, terrible. It disqualified the text. [...] He (Moretti) asked us to manage, in the text, to make a change so that we would be limited to Proagro's resources. And then, for us, it doesn't solve it", said Lupion.

According to the president of the FPA, the economic team wants rural insurance resources to depend exclusively on savings generated within Proagro (Agricultural Activity Guarantee Program).

Lupion stated that the ruralist group is resisting the proposal because the sector has already received a similar promise previously, without the resources being effectively released. According to him, the changes promoted in Proagro in 2023 reduced producers' access to the program and generated estimated savings of between R$4 billion and R$6 billion.

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These resources, however, were not directed to rural insurance, as part of the sector advocated. Therefore, according to the parliamentarian, there is skepticism within the bench about repeating the model.

"This economy should have come to the PSR and it won't happen. So, I don't believe it will happen now," he said.

For Lupion, the new rural insurance model is considered a priority because the program's current coverage was insufficient given the losses caused by climate events in recent years. According to him, the sector is experiencing a scenario of reduction in insured areas precisely at a time of increasing frequency of droughts and floods in the main producing regions.

The deputy also stated that part of the bench's claim is to remove rural insurance from the Mapa budget (Ministry of Agriculture and Livestock) and link it to the Ministry of Finance, in an attempt to avoid political constraints and blockages throughout the year. According to him, the economic team resists the model.

"We didn't want it to be linked to the Ministry of Agriculture's budget. We want it to stay in the Ministry of Finance, so that we don't have to be constrained. But it gives us a text with guarantees that these resources will be released every year without any contingency", he stated.

According to Lupion, the lack of budget predictability compromised rural insurance coverage in recent harvests. "So, that's why we've been practically without insurance for three harvests," he said.

Agro discards Cide for Profert
Another topic discussed was the progress of Profert (Fertilizer Industry Development Program), a proposal that seeks to stimulate national fertilizer production and reduce Brazilian dependence on imported inputs.

Lupion stated that the new report by the deputy (PSD-PA) began to be debated this Tuesday (26) and there is still no consensus among productive entities on the proposal.

However, the deputy highlights that the creation of new taxes or charges to finance incentives for the sector, such as a possible CID (Contribution for Intervention in the Economic Domain) on fertilizers, has already been ruled out.

"We completely rule out cide. We cannot hope to solve the problem of fertilizer supply on the market, generating costs for the producer. It is not completely our entire objective here", he stated.

"We talk about mandate, we talk about quantity, we talk about incentives.

But in the end we discarded it", he added.

PLP 114 advances among priority agricultural agendas
Regarding PLP (Complementary Bill) 114/2026, the president of the FPA (Parliamentary Front for Agriculture), deputy (PP-PR), stated that the proposal has advanced in negotiations over the last few days and should enter the Chamber's agenda this week.

According to the parliamentarian, one of the changes made to the text was precisely the removal of the possibility of using resources from the FS (Social Fund) from the pre-salt for actions linked to agriculture.

One of the changes was the removal of the possibility of using fund resources to finance actions linked to agriculture, including the hypothesis of using pre-salt FS resources to renegotiate rural debts. The initial proposal predicted a potential of around R$20 billion in resources.

According to the report, the strategy was to avoid impact on the parallel negotiations between the government and Congress on the proposal to renegotiate rural debts.

Another amended section in the proposal was the deferral of IBS (Tax on Goods and Services) and CBS (Contribution on Goods and Services) for operations involving corn, in addition to an attempt to expand the mechanism to the sugarcane chain as well.

Negotiations also include maintaining the competitive differential of ethanol produced from sugar cane in relation to gasoline, a mechanism guaranteed by the Federal Constitution and defended by the sugar-energy sector during discussions on tax reform regulation.

How does the producer finance the harvest in Brazil?

Source: CNN