Evaluation of the Rural Insurance Premium Subsidy Program from 2005 to 2012

Abstract

This paper aims to evaluate the Rural Insurance Premium Subsidy Program (PSR) – a Brazilian program created in 2003 and administered by the Ministry of Agriculture, Livestock and Food Supply (Mapa) – in the period of 2005–2012 in terms of universal access to agricultural insurance. The program has contributed to the expansion of insurance in agricultural and livestock production during the studied period; however, the subsidies are highly concentrated in the South Region of Brazil, more specifically in the state of Paraná. The other regions, especially the Northeast and the North, only have a marginal share in the PSR. Similarly, grains have a share in PSR of more than 74% in the different categories analyzed. Based on the analyzed data, it is concluded that the program objectives were partially achieved, since there was an increase in insurance in rural areas, but this increase occurred in a concentrative way.