CABEÇA
DE LÍDER

José Luiz Tejon

Rural Insurance: Essential in a World of Climate Change

Publicado em 30/01/2025

Divulgação
Tirso Meirelles, presidente of Faesp.

PSR (Rural Insurance Plan) must be of  top priority

Published on 23th/Jan/2025

Radio Eldorado/Estadão-SP-Brasil

*Prof.José Luiz Tejon

Faesp (Federation of Agriculture and Livestock of the State of São Paulo) and Brazilian agribusiness federations are asking that the presidential veto of R$4 billion demanded by the sector for the rural insurance budget be reversed.

I received protests from the president of Faesp in São Paulo, its President Mr. Tirso Meirelles, and also from the interim president of FAEP (Federation of Agriculture of the State of Paraná), Mr. Ágide Meneguette, regarding the veto by the Brasilian Republic President regarding the provision of the 2025 Budget Guidelines Law, that protects the rural insurance budget in Brasil from cuts.

The presidents of the federations have stated that this veto jeopardizes the stability of Agribusiness and Food Security in Brazil. President Tirso Meirelles emphasizes, “Climate change is increasingly demanding the attention of rural producers, who face uncertainty about their harvests. Last year, we witnessed droughts, heavy rains, frosts, and fires impacting production, and in some instances, these issues will persist into this year.” Agricultural Insurance (here called PSR) is essential to ensure the continuity of agricultural production and keep Brasil among the largest global food producers”, concluded President Tirso.

At the end of last week, the U.S.D.A (United States Department of Agriculture) monitored crops worldwide and presented a report showing a decrease in the United States' soybean and corn harvest.

At the time of this article, I´m speaking from Mato Grosso do Sul, where there´s an outlook for good harvests up to the present moment, but climate uncertainty is present in every conversation with rural producers in the country today.

In a meeting with about a thousand farmers, one question remains: Climate Uncertainty.

When I bring up Rural Insurance, I consistently hear that many farmers avoid it due to prohibitive costs. This highlights a significant gap in consistent and effective public policy regarding Rural Insurance.

I completely agree It´s unfair for farmers to bear the full burden of risks associated with their outdoor activities, especially when unpredictable factors like climate change can significantly impact their livelihoods. Therefore, robust public policies and affordable insurance options are essential to support our producers.

The budget cuts to the Rural Insurance Program (PSR) are considered a very serious strategic error by rural leaders and they are asking for priority treatment by the National Congress over this essential topic so that this presidential veto can be reversed.

*José Luiz Tejon – PhD in Education-Universidad de La Empresa/Uruguay. Master's degree in Art Education and History of Culture - Mackenzie University. Journalist and publicist – Harvard, MIT and PACE/USA, Insead in France Specialisation Academic Coordinator of Master Science Food & Agribusiness Management at Audencia in Nantes/France and FECAP/ Brazil. 0Managing Partner at Biomarketing and TCA International. Professional Head at Agro Anefac. Writer author and co-author of 37 books. Agro Personality Award 2023. ABAG.  Former director of Grupo Estadão, Agroceres and Jacto S/A.

 

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