Cevio Alberto Mengarda, a soybean and corn producer in Marechal Cândido Rondon, in the western region of Paraná, followed in his father's footsteps in agriculture and today manages the family property. However, when it comes to agricultural insurance, the tradition has not been maintained. This is because the current scenario has made contracting insurance unfeasible.
“Before, my father and I even campaigned to encourage other producers to take out insurance. But I abandoned that practice five years ago. With the water shortage in the region, which affected corn production, and the government's recurring delays in paying the subsidy, the policies became expensive and the coverage decreased, making the service unattractive,” says Mengarda.
The farmer from Marechal Cândido Rondon is part of the statistics that reveal the decline in rural insurance in Paraná. Data from the National Confederation of General Insurance, Private Pension and Life, Supplementary Health and Capitalization Companies (CNseg) shows that revenue in the state fell from R$ 2,3 billion in 2022 to R$ 1,9 billion in 2025, a reduction of 17% in the period.
The decline is even more pronounced when considering the number of contracts. Information from the Rural Insurance Premium Subsidy Program (PSR) of the Ministry of Agriculture and Livestock (Mapa) indicates that the number of policies fell from 82 in 2021 to 26 in 2025, a drop of 68,3% in four years.
For the FAEP System, this scenario raises an alarm, especially given the intensification of climatic events. “A significant part of this decline is related to the cuts announced by the federal government in recent years to the Rural Insurance Premium Subsidy Program. This discourages farmers and puts the entire activity at risk,” says the president of the FAEP System, Ágide Eduardo Meneguette. “Rural insurance is a fundamental tool that needs to be valued and promoted. Otherwise, in the face of recurring climatic adversities, food production is left uncovered,” he adds.
Budgetary data reinforces this concern. In 2025, approximately 42% of the resources allocated to the PSR were blocked. In 2024, the actual expenditure was approximately 40% below the amount approved by Congress.
Even among farmers who still maintain insurance, discouragement is evident. Farmer Eduardo Martins, from the municipality of Alvorada do Sul, continues to contract the service, but with reservations, for the cultivation of soybeans and corn. “The contract provides security for the producer to invest. But today, the indemnities don't cover all the losses, and with the reduction in subsidies, the cost has become very high, which makes contracting difficult,” he reports. “Ideally, there should be a model that guarantees the producer the expected income from the harvest. As it is, it helps, but it doesn't solve the problem,” he adds.
Area shrank
Data from the Rural Insurance Premium Subsidy Program also indicate that the amount of insured land in Paraná is following the decline in policies. 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%.
“Without insurance, the producer is exposed to risks. On the other hand, without subsidies, the numbers don't add up and the farmer ends up bearing the losses alone. This scenario needs to be reviewed. With less participation, policies become more expensive and the cycle worsens,” Meneguette emphasizes.
Historically, producers in Paraná have led the country in contracting rural insurance. In 2024, there were more than 45,8 policies, equivalent to 37,5% of contracts signed through the Rural Insurance Program (PSR). Even so, the decline in contracting is nationwide. Data from CNseg shows that the insured area in Brazil fell from 13,7 million hectares in 2021 to 3,2 million last year, a decrease of 76,6%. In 2025, the sector's revenue also decreased by 8,8%, from R$ 14,2 billion to R$ 12,9 billion.
“Without insurance, the producer ends up having to sell cattle, machinery, trucks, and even part of the land to cover losses. It's a difficult reality,” says Admilson Tavarez, a soybean, corn, and wheat producer in the municipality of Arapuã, in the north-central region of Paraná.
Despite the difficulties, Tavarez still maintains insurance on part of his property. However, he warns that many farmers lack the resources to absorb losses. “Today we only focus on the most critical areas. The cost is high and the coverage doesn't keep up with the actual losses. In addition to the difficulty in accessing subsidies,” he adds.
Marcos Pires, a soybean and corn producer in São Mateus do Sul, in the south-central region of Paraná, stopped taking out crop insurance more than six years ago because the cost ceased to be worthwhile.
“The price of our products has not kept pace with inflation. On the contrary, it fell in the last harvest. Without government assistance, the cost of insurance doesn't fit into the budget. It's a macroeconomic issue, but with the support of the FAEP System, we are not fighting alone. We are gaining strength to keep agriculture in Paraná alive,” he states.
Marcos, an agricultural engineer, has worked in the field for 40 years and has had crop insurance for about 25 years. He reports that, in addition to the reduction in subsidies, changes in coverage rules have also driven producers away from the service.
“We understand that insurance companies need to make a profit, but some changes end up putting the producer at a disadvantage. For years I paid for insurance and, when I needed to make a claim, there was often some contractual clause that prevented service,” he says.
Source - folhadolitoral.com.br
