Phytosanitary insurance for citriculture: opportunities and challenges

Abstract

This study aimed to estimate the costs and benefits of phytosanitary insurance, considering it as a tool to encourage the management of diseases citrus canker and citrus greening in the citrus orchards in state of São Paulo, Brazil. The level of incidence of the two diseases and the eradication of plants in their production phase grow at increasing rates in São Paulo, and to date there is no policy to support small and medium producers. As a methodological tool, this study used the cost-benefit analysis to estimate the benefits and costs associated with the management of these two diseases. The estimated results for the conditions defined in 2010 (ex post analysis) and for a proposal for renewal (ex ante analysis) showed that in the medium and long term, the benefits of keeping the diseases under control, through appropriate management, outweigh the costs of management (from the point of view of the producer) and the expenditure on insurance (from the point of view of the government). However, one of the biggest challenges of this type of policy is the pricing of the insurance policy in an environment with increasing incidence rates.