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