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This report analyzes the landscape of climate finance for agricultural risk management in Brazil between 2021 and 2023, focusing on public and private instruments used to protect rural production from extreme weather events. It details the financial flows of key programs like PROAGRO and PSR, highlighting a shift toward increased spending on loss and damages due to intensifying climate events, and discusses the role of Agricultural Climate Risk Zoning (ZARC) in improving resilience and sustainability.

This report analyzes climate finance for agricultural risk management in Brazil from 2015 to 2020, detailing the roles of public and private funding in enhancing agricultural resilience against climate events such as droughts and excessive rains.

This policy brief analyzes two public rural insurance programs in Brazil: the Agricultural Activity Guarantee Program (PROAGRO) and the Rural Insurance Premium Subsidy Program (PSR). The authors find that PROAGRO's design, where the government bears the risk while financial institutions operate the program, creates severe information asymmetries and moral hazard, leading to higher claim rates and increasing costs for the National Treasury. In contrast, the PSR, where private insurers bear the risk, shows greater efficiency and growth, though it struggles to reach small producers. The report recommends migrating resources from PROAGRO to the PSR, improving the training of claims adjusters, and adopting parametric insurance to reduce fraud and monitoring costs.

This report by the Climate Policy Initiative analyzes the instruments and public policies used for agricultural risk management in Brazil. It examines the strengths and failures of current systems, including insurance programs and price guarantees, and provides recommendations to improve efficiency and sustainability in the face of climate change.