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Evaluation of federal government programs of rural insurance in Brazil from 2000 to 2022

Abstract

This paper analysis the federal rural insurance programs under the perspective of government spending and their enrollment by farmers, highlighting in both cases the inter- and intra-regional differences in their enlistment in Brazil (2000-2022). Special attention is shed on the Agricultural Activity Guarantee Program (PROAGRO) and the Rural Insurance Premium Subsidy Program (PSR). The main findings of the paper are: (1st) there was a real increase of almost 906% in public spending on risk management programs in the Brazilian agriculture from 2000 to 2022. In 2000, only 2.06% of the total federal spending on agriculture was on such programs, a percentage that rose to 27.90% in 2022; (2st) there is a concentration of public resources for risk management in areas located in the southern region of Brazil; (3st) the presence of a spatial association in the use of PROAGRO by southern farmers and the use of PSR by both southern and central-western farmers were diagnosed. This spatial concentration turns the insurer vulnerable in the case of a huge adverse weather conditions take place in the South or/and Midwest regions of the country (the largest Brazilian grain producers), because it will imply the financial compensation to concentrate in few years.

Keywords:
PSR; PROAGRO; Garantia-Safra


Sociedade Brasileira de Economia e Sociologia Rural Av. W/3 Norte, Quadra 702 Ed. Brasília Rádio Center Salas 1049-1050, 70719 900 Brasília DF Brasil, - Brasília - DF - Brazil
E-mail: sober@sober.org.br