Over the last decades, the government ofBrazil has developed a risk management strategy with thegoal of reducing the volatility of cash flow in theagricultural sector and the vulnerability of the lessprivileged stakeholders in the rural areas (that is, familyfarmers). Setting up a comprehensive national agriculturerisk management strategy (and subsequent plan and policy)and ensuring an effective inter-institutional andinter-departmental coordination, can be a more effective waythan merely increasing the budget of existing programs (orcreating new ones) to reduce the exposure of theagricultural sector to shocks. In this regard, moststakeholders in Brazil agree that existing agriculture riskmanagement programs in Brazil should be reviewed with theaim of improving the allocation of fiscal resources andguaranteeing a greater positive impact on programs´ targetpopulation. To this end, Brazilian authorities are lookingto learn from international experiences and examining anintegrated public-private partnership (PPP) system foragricultural insurance that helps the government (bothfederal and state) to improve fiscal resilience to shocksand reduce farmers´ vulnerability to disasters. Theobjective of the policy note is to identify theopportunities in the improvement of the agriculturalinsurance system through policy and program reform. Inparticular, the note focuses on: (i) the strengthening ofthe existing legal and regulatory framework, (ii) theinstitutional and operational framework, and (iii) theimprovement of existing government funded programs.
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