IDEAS home Printed from https://ideas.repec.org/a/ibn/masjnl/v10y2016i7p87.html
   My bibliography  Save this article

Analysis of the Brazilian Program of Subsidies for Rural Insurance Premium: Evolution from 2005 to 2014

Author

Listed:
  • Pedro Loyola
  • Vilmar Moreira
  • Claudimar da Veiga

Abstract

Rural insurance is inserted in the field of agricultural policies to mitigate risks that farmers face. It was an innovation for the Brazilian government from the implementation standpoint, despite the existence of similar programs in other countries. The purpose of this paper is to assess the recent evolution of the Brazilian Rural Insurance Premium Subsidy Program (PSR) and its main variables- amount insured area, policies, average area, benefiting producers, total premiums involved and total subsidy. The study examined in detail the PSR representation by region and farming. In order to evaluate the results of this program on agricultural policy, an exploratory and descriptive analysis was performed with the objective of studying the evolution of the Brazilian rural insurance in the context of PSR, using the information available in the Ministry of Agriculture, Livestock and Supply (MAPA) about the program. The information and data were collected between July and August 2015. The study was based on data collected from 2005 to 2013 with some general data of 2014 program included in the study. Even though the focus of the analysis was on the most recent years, 2009-2013. Data analysis revealed that the increased supply and demand for rural insurance is in the South and in the agricultural modalities for grains and fruits, with growth potential in other sectors and other regions in the country. PSR, as public policy, was responsible for the expansion of the rural insurance market in Brazil, encouraging and providing the access of producers to agricultural insurance by subsidizing the premium fee. Although this expansion has been slow and gradual, Brazil had in 2013 about 13.8% of the agricultural area with rural insurance coverage. This reveals the need for expanding the program to popularize this important risk mitigation tool.

Suggested Citation

  • Pedro Loyola & Vilmar Moreira & Claudimar da Veiga, 2016. "Analysis of the Brazilian Program of Subsidies for Rural Insurance Premium: Evolution from 2005 to 2014," Modern Applied Science, Canadian Center of Science and Education, vol. 10(7), pages 1-87, July.
    • Handle: RePEc:ibn:masjnl:v:10:y:2016:i:7:p:87
    as

    Download full text from publisher

    File URL: https://ccsenet.org/journal/index.php/mas/article/download/55796/31846
    Download Restriction: no
    File URL: https://ccsenet.org/journal/index.php/mas/article/view/55796
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Joseph W. Glauber, 2004. "Crop Insurance Reconsidered," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1179-1195.
    2. Ozaki, Vitor, 2010. "Uma Digressão Sobre o Programa de Subvenção ao Prêmio do Seguro Rural e as Implicações para o Futuro deste Mercado," Brazilian Journal of Rural Economy and Sociology (Revista de Economia e Sociologia Rural-RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 48(4), pages 1-20.
    3. Sergey K. Gulev & Mojib Latif, 2015. "The origins of a climate oscillation," Nature, Nature, vol. 521(7553), pages 428-430, May.
    4. Liana Holanda N. Nobre & John E. Grable & Wesley Vieira da Silva & Claudimar Pereira da Veiga, 2016. "A Cross Cultural Test of Financial Risk Tolerance Attitudes: Brazilian and American Similarities and Differences," International Journal of Economics and Financial Issues, Econjournals, vol. 6(1), pages 314-322.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yi, Jing & Richardson, James & Bryant, Henry, 2016. "How Do Premium Subsidies Affect Crop Insurance Demand at Different Coverage Levels: the Case of Corn," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236249, Agricultural and Applied Economics Association.
    2. Chen, Shu-Ling & Miranda, Mario J., 2006. "Modeling Yield Distribution In High Risk Counties: Application To Texas Upland Cotton," 2006 Annual meeting, July 23-26, Long Beach, CA 21392, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Adhikari, Shyam & Knight, Thomas O. & Belasco, Eric J., 2012. "Evaluation of Crop Insurance Yield Guarantees and Producer Welfare with Upward-Trending Yields," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 41(3), pages 1-10, December.
    4. Miao, Ruiqing & Hennessy, David A. & Feng, Hongli, 2016. "The Effects of Crop Insurance Subsidies and Sodsaver on Land-Use Change," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(2), May.
    5. Weiping Lou & Lihong Wu & Haiyan Chen & Zongwei Ji & Yongfei Sun, 2012. "Assessment of rice yield loss due to torrential rain: a case study of Yuhang County, Zhejiang Province, China," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 60(2), pages 311-320, January.
    6. Bougherara, Douadia & Piet, Laurent, 2014. "The Impact of Farmers’ Risk Preferences on the Design of an Individual Yield Crop Insurance," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 183082, European Association of Agricultural Economists.
    7. Glauber, Joseph W. & Effland, Anne, 2016. "United States agricultural policy: Its evolution and impact:," IFPRI discussion papers 1543, International Food Policy Research Institute (IFPRI).
    8. Anderson, John D. & Barnett, Barry J. & Coble, Keith H., 2008. "Impacts of a Standing Disaster Payment Program on U.S. Crop Insurance," 108th Seminar, February 8-9, 2008, Warsaw, Poland 48102, European Association of Agricultural Economists.
    9. Ramirez, Octavio A. & Carpio, Carlos E. & Rejesus, Roderick M., 2011. "Can Crop Insurance Premiums Be Reliably Estimated?," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(1), pages 1-14, April.
    10. Olen, Beau & Wu, Junjie, 2013. "Supply of Insurance for Specialty Crops and its Effect on Yield and Acreage," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150787, Agricultural and Applied Economics Association.
    11. Erich Seamon & Paul E. Gessler & John T. Abatzoglou & Philip W. Mote & Stephen S. Lee, 2023. "Climatic Damage Cause Variations of Agricultural Insurance Loss for the Pacific Northwest Region of the United States," Agriculture, MDPI, vol. 13(12), pages 1-13, November.
    12. Keith H. Coble & Robert Dismukes & Joseph W. Glauber, 2007. "Private Crop Insurers and the Reinsurance Fund Allocation Decision," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(3), pages 582-595.
    13. Malik, Ravinder Paul Singh & Amarnath, Giriraj, 2021. "Economics of Index-based Flood Insurance (IBFI)," IWMI Water Policy Briefings 316618, International Water Management Institute.
    14. Kodad Rajaa & Jingfeng Yuan & Lei Zhang & Junwei Ma & Lei Zhang, 2021. "External Factors Affecting Investment in Overseas Electric Power Projects," Springer Books, in: Gui Ye & Hongping Yuan & Jian Zuo (ed.), Proceedings of the 24th International Symposium on Advancement of Construction Management and Real Estate, pages 1455-1472, Springer.
    15. Jim Teal & Andrew W. Stevens, 2024. "Race and premium misrating in the U.S. Federal Crop Insurance Program," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 46(1), pages 169-188, March.
    16. Wallander, Steven & Aillery, Marcel & Hellerstein, Daniel & Hand, Michael S., 2013. "The Role of Conservation Programs in Drought Risk Adaptation," Economic Research Report 262224, United States Department of Agriculture, Economic Research Service.
    17. Malik, Ravinder Paul Singh & Amarnath, Giriraj, 2021. "Economics of Index-based Flood Insurance (IBFI): scenario analysis and stakeholder perspectives from South Asia," IWMI Working Papers H050736, International Water Management Institute.
    18. Vasco Molini & Michiel Keyzer & Bart van den Boom & Wouter Zant & Nicholas Nsowah-Nuamah, 2010. "Safety Nets and Index-Based Insurance: Historical Assessment and Semiparametric Simulation for Northern Ghana," Economic Development and Cultural Change, University of Chicago Press, vol. 58(4), pages 671-712, July.
    19. Joshua D. Woodard & Philip Garcia, 2008. "Basis risk and weather hedging effectiveness," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 68(1), pages 99-117, May.
    20. Omar A. A. Jawabreh & Rami Muneer Mahmoud & Ehab Alshatnawi & Emran Al Momani, 2017. "Using Financial Analysis Methods in the Hotel Sector for the Purposes of Planning and Monitoring Case Study Al Zaitonia Hotel," International Journal of Economics and Financial Issues, Econjournals, vol. 7(4), pages 162-173.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibn:masjnl:v:10:y:2016:i:7:p:87. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.