In 2018, the State Government, through the Agribusiness Expansion Fund of São Paulo – The Family Agribusiness Bank (Feap / Banagro), of the Secretariat of Agriculture and Supply, will provide a resource of R $ 30 million to support the Paulista producer in coverage crop losses, adverse natural phenomena and / or revenue reduction; coverage of animal life; and citrus orchard losses from citrus canker and greening. The conditions for 2018 of the State Grant Program of the Rural Insurance Prize were disclosed in the Official State Gazette of last April 6.
From 2003 to 2017, the Program has already covered 109,202 applications for grants, in the total amount of R $ 221,950,494.95. On average, each producer benefited from R $ 2,032.48. “The program aims to increase the use of rural insurance to reduce the value of the premium, giving producers greater income stability and minimizing risks,” said Fernando Aluízio Penteado, FEAP’s Executive Secretary, pointing out that hiring has been increasing year per year (see table below).
“São Paulo is the state that has the most consistent grant program in the country,” said Penteado. He explained that with the federal and state subsidy, the producer could only pay 27.5% of the value of insurance contracted with insurers.
The State Program shall assist rural producers involved in programs or activities of interest to the state economy, as defined by the Secretariat, which have been subject to a rural insurance contract between January 1 and December 31, 2018, with participating insurers. Insurers that are interested in integrating the program may register, by submitting documents to the State Department.
Rural producers, individual or legal, who contract rural insurance in the form of agricultural insurance (climatic risk, climatic risk / price and sanitary risk), livestock, forestry and aquaculture will be supported by the state subsidy. The cultures and activities included in the Program were analyzed based on their economic importance, market potential, production characteristics and local importance.
The maximum amount of subsidy is R $ 24,000 per beneficiary, within the limit of up to 50% of the total net rural insurance premium contracted with accredited insurers, provided that the insured activity or culture is not included among the activities or crops eligible for the federal subsidy.
“In this case, regardless of whether it is requested, the rural producer may apply for the state subsidy in the amount corresponding to 50% of the value of the portion of the premium of the ineligible insurance, provided that the sum of the benefits related to the state subsidy does not exceed the maximum value established “Said Penteado, noting that the rural producer could receive the state grant of the rural insurance premium for more than one crop and / or activity.