Factsheet: PSR

PSR

Key Information
Full name of Instrument & Measure (English): 
Rural Insurance Premium Subvention Program (PSR)
Description: 
Rural insurance is one of the most important agricultural policy instruments, indispensable for the good performance of agribusiness, especially considering its size, dimension and socio-economic importance. The Rural Insurance Premium Subvention Program (PSR) main guidelines are to promote ample access to rural insurance, assure the role of rural insurance as an income stability instrument, induce the use of appropriate technologies, and modernize the administration of agricultural enterprises. The operations of the PSR began middle November 2005, benefitting seven cultures. In 2006, the PSR expanded its assistance to all cultures in the agricultural modality and included livestock, aquiculture and forest as beneficiaries of the subvention. Other measures taken by the government that represented important advancements in the implementation of rural insurance include the following ones: a) Expansion of the credit limit b) Financing of the rural insurance premium c) Support to insurance companies against climatic adversities considered catastrophic. Law No. 10.823, of 12/19/03, regulated by Decree No. 5.121, of 6/29/04, authorizes the granting of economic subventions to the rural insurance premium. It seeks to ensure the compatibility between the value of the premium that the producer can pay and the value that the insurance companies need to charge to keep the actuarial balance of their portfolios. Thus, the government provides subvention to part of the producer’s expenses with the rural insurance.
Goal/Aim: 
provide information on agricultural legislation

Sector/Topic targeted:

Responsible Authority: 
Ministry of Agriculture, Livestock and Food Supply

Status:

Trade Relevance: 
Policies ensuring sustainable production of biomass
Year Instrument & Measure Started: 
2003