CMN now requires photos with verified location for rural insurance.

Farmers who suffer crop losses will have to use georeferenced photos (with GPS location incorporated into the file) during inspections to claim agricultural insurance. The National Monetary Council (CMN) approved on Thursday (25) reinforcements in the control of the Agricultural Activity Guarantee Program (Proagro), says a note from "Agência Brasil". In a note, the Central Bank (BC) explained that the measure aims to prove that the images were captured in the affected area. The use of georeferenced photos to prove crop losses has been encouraged since the floods in Rio Grande do Sul in 2024. Another change will be the discount of the production obtained in the value of the indemnities, in case of serious losses. According to the BC, the reinforcement of controls aims to improve the financial health of Proagro, the country's main public agricultural insurance program.

Lower rates

According to the Central Bank of Brazil (BC), continuous monitoring of Proagro has contributed to reducing the risk profile of rural insurance. This improvement, the agency highlighted, allowed the National Monetary Council (CMN) to adjust the equilibrium rates and surcharges of the program, resulting in a lower average cost of Proagro for most producers. The equilibrium rate represents a percentage paid by the producer that measures the risk of crop failure for a specific crop in a particular region. The surcharge represents a fee that the producer pays to access rural insurance. According to the BC, the compensation amounts were adjusted to better reflect the risk of crop failure for each product and region. The new rules will be applied to projects covered by Proagro from July 1, 2026. According to the BC, the measures contribute to the sustainability of the program and to the adequate protection of Brazilian rural producers. Created in 1973, Proagro is funded by the Federal Government, by contributions from rural producers, and by revenues obtained from the application of the collected surcharge.

This text was translated by machine from Brazilian Portuguese.