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Collective negotiation of rural insurance in Brazil: conditions, opportunities, and challenges of a model supported by cooperatives

Author

Listed:
  • Pedro Augusto Martins Loyola Junior
  • Vilmar Rodrigues Moreira
  • Claudimar Pereira Da Veiga

Abstract

Crop insurance is a high-risk market worldwide, mainly due to the complexity involved in developing this market, high administrative costs, and the increased likelihood of disasters in rural areas. Recognising these difficulties, the Brazilian Government created the Rural Insurance Premium Subsidy Program (PSR - Prêmio do Seguro Rural, in Portuguese) in 2003 with the aim of providing producers with greater access to insurance. The purpose of this study was to identify the conditions, opportunities, and challenges of the collective negotiation model of soybean crop insurance and to present contributions to the model supported by the cooperative system. Data analysis revealed that the experimental project of collective negotiation for soybean crop insurance under the scope of the PSR, as a public policy, allowed producers, for the first time, to organise themselves through their cooperative associations to look for better conditions for contracting crop insurance.

Suggested Citation

  • Pedro Augusto Martins Loyola Junior & Vilmar Rodrigues Moreira & Claudimar Pereira Da Veiga, 2019. "Collective negotiation of rural insurance in Brazil: conditions, opportunities, and challenges of a model supported by cooperatives," International Journal of Agricultural Resources, Governance and Ecology, Inderscience Enterprises Ltd, vol. 15(2), pages 101-120.
    • Handle: RePEc:ids:ijarge:v:15:y:2019:i:2:p:101-120
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