Comparison between the Spanish and Brazilian crop insurance schemes: implications for the development of the insurance in Brazil

• Grant number: 10/02405-0
• Support Opportunities: Scholarships in Brazil - Scientific Initiation
• Start date: August 01, 2010
• End date: July 31, 2011
• Field of knowledge: Applied Social Sciences - Economics - Agrarian and Natural Resource Economics
• Principal Investigator: Vitor Augusto Ozaki
• Grantee: Thomas Tezotto
• Host Institution: Escola Superior de Agricultura Luiz de Queiroz (ESALQ). Universidade de São Paulo (USP). Piracicaba , SP, Brazil
• Associated research grant: 09/00092-7 - Crop insurance: creation of an integrated information system and quantitative modeling, AP.JP

Abstract

One of the great problems that affect Brazilian agriculture is the scarcity of an agricultural insurance, which covers only 1% of the Gross domestic product. Differently from the Spanish agricultural insurance scheme, that covers 40% of the farming GDP. The success of the program is bases on the transparency, the stability and the institutional cooperation of the system, created in 1980. The model is based on the organization of the producers - 95% of the insurance borrowers are the cooperatives or another type of organization - and on the risk spreading by the insurance companies. The objective of the work is to compare the different models of agricultural insurance between Spain and Brazil and to analyze possible developments of the Brazilian system based on the Spanish experience. (AU)