Risk Management in Brazilian Agriculture: Instruments, Public Policy, and Perspectives

The report evaluates agricultural risk management in Brazil, finding that while the insurance market has grown, it remains highly concentrated and underfunded compared to rural credit. It highlights that nearly 60% of municipalities lack insurance and suggests redirecting public funds from credit to insurance and expanding the use of Agricultural Climate Risk Zoning (ZARC) to improve productivity and land use.

• Brazil's rural insurance market is characterized by high concentration and limited accessibility. In 2019/20, a single company held 52.3% of the market, and only 14 insurers were active. Furthermore, as of 2018, nearly 60% of Brazilian municipalities had no rural insurance contracts for crops, livestock, or forests.
• There is a significant disparity between the funding allocated to rural credit and that allocated to risk management. For the 2019/20 agricultural year, approximately R$225.6 billion was allocated to rural credit programs (PAP and PRONAF), with credit subsidies estimated at R$10 billion annually. In contrast, the National Treasury allocated R$161.5 million to PROAGRO in 2018, and the average PSR subsidy from 2010 to 2019 was around R$383.6 million.

APA

Souza, P., & Assunção, J. (2020). Risk Management in Brazilian Agriculture: Instruments, Public Policy, and Perspectives. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2020/08/Report-–-Risk-Management-in-Brazilian-Agriculture.pdf

Chicago

Souza, Priscila, and Juliano Assunção. Risk Management in Brazilian Agriculture: Instruments, Public Policy, and Perspectives. Climate Policy Initiative, 2020. https://www.climatepolicyinitiative.org/wp-content/uploads/2020/08/Report-–-Risk-Management-in-Brazilian-Agriculture.pdf.

Wikipedia

{{cite report |last1=Souza |first1=Priscila |last2=Assunção |first2=Juliano |title=Risk Management in Brazilian Agriculture: Instruments, Public Policy, and Perspectives |publisher=Climate Policy Initiative |date=August 2020 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2020/08/Report-–-Risk-Management-in-Brazilian-Agriculture.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{souza2020risk, author = {Souza, Priscila and Assunção, Juliano}, title = {{Risk Management in Brazilian Agriculture: Instruments, Public Policy, and Perspectives}}, institution = {Climate Policy Initiative}, year = {2020}, month = aug, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2020/08/Report-–-Risk-Management-in-Brazilian-Agriculture.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }