The Agriculture Committee (CRA) approved on Tuesday (24) Senator Kátia Abreu’s bill (PDT-TO), which modifies government subsidy mechanisms for rural insurance (PLS 185/2017). According to the “Senate Agency”, the proposal allows the premium on put options contracts traded through the São Paulo Stock Exchange (BM&F) can be subsidized with resources from the public budget.
The text also extends insurance coverage from protection against climate risks to other types of risks, such as epidemics, marketing issues or exchange rate variations. The project also includes equalization of rural insurance, equalization of interest on rural loans and price guarantee, among the items covered by the country’s legislation (Law 8.427).
“This law, by increasing funding, has made a lot of contribution to agriculture and livestock farming achieving the admirable productivity gains we have seen in recent decades,” Senator Wellington Fagundes (PR-MT) said during the vote.
The text also modifies the Rural Insurance Subsidy Law (Law 10.823), transferring the charge of equalizing the premiums of this insurance from the Ministry of Agriculture (MPLS) to the National Treasury Secretariat of the Ministry of Finance. The project is now under consideration by the Economic Affairs Committee.