DESAFIOS FINANCEIROS E PROPOSTAS PARA PRODUÇÃO SUSTENTÁVEL NO BRASIL

This 2018 report by the Climate Policy Initiative examines the financial barriers to sustainable agricultural production in Brazil. It argues that while Brazil can increase productivity without further deforestation by utilizing existing pastures, the current rural credit system is too complex, overly dependent on public banks, and lacks adequate risk management tools like insurance. The authors propose integrating rural credit with the 2012 Forest Code to incentivize environmental compliance and suggest a transition toward multi-year planning and increased private sector participation to improve efficiency and sustainability.

• Brazil has significant potential to increase food production without deforestation by converting pastures to crops or increasing productivity. As of 2018, approximately 24% of the national territory was pasture, while agricultural land and planted forests occupied less than 10%.
• The transition from extensive livestock farming to intensified crop production increases the economic risk profile for producers, making them more susceptible to pests and climate shocks. The report suggests that Brazil needs to shift its financial instruments toward risk management tools, such as insurance and derivatives, similar to the model used in the United States.
• The Brazilian rural credit system is characterized by high complexity, unpredictability, and a heavy reliance on public banks. The system comprises over 25 overlapping programs and lines of credit, with annual planning cycles that create volatility. Distribution is dominated by public institutions like Banco do Brasil, Banco da Amazônia, and Banco do Nordeste, limiting competition and efficiency.
• The 2012 Forest Code (Law No. 12.651/2012) promotes sustainability by limiting area expansion and encouraging productivity gains through Legal Reserves (RL) and Permanent Preservation Areas (APP). However, implementation is challenging, and the report proposes using rural credit to incentivize compliance and forest restoration.
• Current risk management instruments in Brazil are insufficient compared to credit programs. The Rural Insurance Premium Subsidy Program (PSR) covered only 6% of the total planted area and 2.5% of national agricultural revenue in 2017. The Proagro program's coverage in 2016 was limited to a production value of R$ 15 billion.
• The report proposes a three-tiered reform agenda: short-term expansion of credit limits for producers compliant with the Forest Code; medium-term extension of planning horizons to 3-5 years, simplification of programs, and increased private bank participation; and long-term development of insurance/derivatives and strict alignment of subsidies with the provision of public goods.

APA

Assunção, J., & Souza, P. (2018). DESAFIOS FINANCEIROS E PROPOSTAS PARA PRODUÇÃO SUSTENTÁVEL NO BRASIL. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2019/02/Desafios-Financeiros-da-Produção-PT-1.pdf

Chicago

Assunção, Juliano, and Priscila Souza. DESAFIOS FINANCEIROS E PROPOSTAS PARA PRODUÇÃO SUSTENTÁVEL NO BRASIL. Climate Policy Initiative, 2018. https://www.climatepolicyinitiative.org/wp-content/uploads/2019/02/Desafios-Financeiros-da-Produção-PT-1.pdf.

Wikipedia

{{cite report |last1=Assunção |first1=Juliano |last2=Souza |first2=Priscila |title=DESAFIOS FINANCEIROS E PROPOSTAS PARA PRODUÇÃO SUSTENTÁVEL NO BRASIL |publisher=Climate Policy Initiative |date=December 2018 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2019/02/Desafios-Financeiros-da-Produção-PT-1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{assuno2018desafios, author = {Assunção, Juliano and Souza, Priscila}, title = {{DESAFIOS FINANCEIROS E PROPOSTAS PARA PRODUÇÃO SUSTENTÁVEL NO BRASIL}}, institution = {Climate Policy Initiative}, year = {2018}, month = dec, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2019/02/Desafios-Financeiros-da-Produção-PT-1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }