Brazil's subsidized rural insurance coverage fell by approximately 77% [3] between 2021 and 2025, leaving millions of hectares of farmland unprotected.
This decline leaves the Brazilian agricultural sector vulnerable to severe weather patterns. With the phenomenon of El Niño posing a persistent threat to crop yields, the lack of insurance coverage increases the financial risk for farmers and threatens national food security.
The Programa de Subvenção ao Prêmio do Seguro Rural (PSR) is administered by the National Confederation of Insurers, known as CNSeg. According to data from the program, the total area covered by subsidized insurance was approximately 14 million hectares in 2021 [1]. By 2025, that figure plummeted to 3.2 million hectares [2].
This sharp contraction represents a significant shift in the landscape of Brazilian agribusiness. The reduction in participation suggests a growing gap in the safety net designed to protect producers from catastrophic losses caused by drought, or excessive rain.
Climate volatility has exacerbated the urgency for such protections. The risk associated with El Niño has contributed to the precarious state of rural coverage, as the program struggles to maintain the levels of adherence seen at the start of the decade.
The current coverage levels represent some of the lowest figures seen in two decades. As the agricultural sector faces increasing pressure from shifting weather patterns, the reliance on subsidized insurance remains a critical point of failure for many smaller producers who cannot afford private premiums.
“The area covered by subsidized insurance was approximately 14 million hectares in 2021.”
The collapse in PSR coverage indicates a systemic failure in Brazil's agricultural risk management. By losing nearly 80% of its subsidized coverage in four years, the country has effectively dismantled a primary financial buffer just as climate instability from El Niño increases. This shift likely forces farmers to either absorb losses personally or seek riskier credit options, potentially destabilizing the broader agro-economy.
