US tariffs threaten agricultural insurance in Brazil

Daniel Miquelluti, Head of New Markets and co-founder of Picsel, highlights that Brazilian agricultural insurance is highly dependent on export commodities and suffers direct impact from the reduction in foreign revenues. The situation is aggravated by the 42% cut in the budget of the Rural Subsidy Program (PSR), according to the Ministry of Agriculture, which reduced the insured area from 14 million to 7 million hectares, as reported by the Confederação Nacional das Seguradoras (CNseg). "Brazilian agricultural insurance is highly dependent on export commodities. When there is an abrupt reduction in foreign revenue, the producer loses financial momentum to maintain coverage, precisely at a time of greater climatic and market volatility," he states. The South and Southeast regions, more dependent on the American market, and crops such as coffee and beef tend to be the most affected, according to an analysis by the Instituto Brasileiro de Economia da FGV (FGV Ibre). The contraction ...