FAEP system repudiates new blockade in the Rural Insurance budget

The FAEP System receives with concern the new blockade announced for the 2026 PSR (Rural Insurance Premium Subsidy Program) budget.

As demonstrated in the Federal Budget Panel, on Tuesday (9), the cut, if confirmed, will be R$461.7 million, equivalent to 45.7% of the R$1.01 billion, the initial amount budgeted for the PSR this year.

The FAEP System asks the federal government to immediately reverse the decision, to guarantee budgetary security for rural producers.

The recent cuts raise alarm and make the situation in the field even more difficult. In 2025, around 42% of the resources planned for the PSR were blocked. In 2024, execution was approximately 40% below the amount approved by Congress.

According to the president of the FAEP System, Ágide Eduardo Meneguette, the entity hopes that the federal government does not make this new cut. Otherwise, according to him, it will be a hard blow to rural producers, who have already faced countless difficulties in recent seasons, specifically in Paraná, the impact would be enormous for rural production, since the state government is the one that contracts the most rural insurance in the country.

In 2025, Paraná contracted 28.02 thousand policies, almost 43.7% of contracts signed via PSR in the country (64.17 thousand policies). According to Meneguette, the cuts in recent years, by the Federal Government, are critical and discourage farmers even more.

Information from the PSR itself, from the Ministry of Agriculture and Livestock (Mapa), indicates that the number of policies fell from 82 thousand in 2021 to 26 thousand in 2025, a drop of 68.3% in four years. Also according to data from the program, the extension of the insured area, in Paraná, follows the decline in policies.

Faep system specialist comments on drop in rural insurance contracts in Paraná | CNN AGRO NEWS

In 2021, the State protected more than 3.8 million hectares, but this number shrank to 1.25 million hectares in 2025, a drop of 63.8%.

For Meneguette, without the subsidy, the account won't close and the farmer ends up bearing the losses alone.

Source: CNN