Brazil Rural Insurance Contracts Plunge 56% as Subsidies Shrink

Brazil's rural insurance market contracted sharply: insured area fell from 7.5% of planted land in 2024 to 3.3% in 2025, with insured value dropping from R$50.5bn to R$17.7bn and federal subsidies cut from R$1bn to R$561.1mn. The decline reflects reduced government support, leaving producers to bear costs alone, and may persist into 2026. This signals rising financial risk for Brazil's agricultural sector and potential pressure on rural credit and input demand.