Climate Change, Food Security and Insurance Systems for Family Farming

Climate Change, Food Security and Insurance Systems for Family Farming

Brazil case: Climate, income and price insurance programs.

Year of publication 2016

Pages 4p.

Publisher FAO ;

Product type Document

Edition 1

Full item page

Synopsis (short abstract) Family Farming Insurance Disasters resulting from weather changes cause the greatest economic impacts on the region (70% of emergencies are weather-related). Annual costs of approximately 2.2% of the GDP (base year 2010) are estimated to face disasters, in lack of climate change adaptation actions. The global climate risk index estimated based on information from 1995 to 2014, indicates that 4 out of the 10 countries with the highest risk index are in Latin America and the Caribbean: Honduras, H aiti, Nicaragua and Guatemala. In the region, one third of the population lives in high risk zones due to exposure to geological and hydro-meteorological threats. Climate change is also increasing the dispersal area of plant and animal plagues and diseases, in addition to increasing the probability of outbreaks and intensified effects. Through the enactment of Law 5,969 of 1973, Brazil established the Agricultural and Livestock Activity Guarantee Program (PROAGRO) to protect farmers from rural loan obligations. In 2004, it created “PROAGRO Mais”, for producers associated to the National Program for the Strengthening of Family Farming (PRONAF). Currently, PROAGRO protects medium-sized farmers (PRONAMP), and PROAGRO Mais protects PRONAF beneficiaries. PROAGRO Mais guarantees, in cost operations, up to 80% of the expected gross income, covering financing and up to R$ 20 thousand of the estimated net income; and for investment operations, coverage limit is 95% of the expected gross inco me, deducting the coverage by cost operations. In cost operations, PRONAF beneficiary participation is mandatory, while in investment operations, it is optional. Harvest Guarantee In Latin America and the Caribbean, family farming is very important for the food security and nutrition of all population. Approximately 81% of agricultural endeavours correspond to family farmers and, depending on the country, they provide 27% to 67% of the food. Family farming generates 57% to 77% of agricultural j obs in the region, so its is a very important job-generation sector. To continue boosting food security and sustainable development, family farming has three important challenges: 1) to produce more assorted and nutritional foods, 2) to continue creating safer and more stable jobs, and 3) to favour the appropriate use of resources used in production. Harvest Guarantee is a program that supports family farmers below the poverty line, with emphasis on the Brazilian Semiarid Zone, where losses due to drought are frequent. It was established by Law 10,420, of April 10, 2002. Price Guarantee for Family Farming This is a Federal Government program that offers the family farmer with PRONAF loan, a protection against price reductions. Currently, 51 products have a guarantee price. Rural population in the region lives in an extremely precarious situation because the poorest population plus the population in economic vulnerability situation correspond to 80% of the total rural population. Many family farmers in this percentage have their livelihoods depending greatly on environmental factors and natural resources.

Language English

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