Agricultural resilience: Impact of extreme weather events on the adoption of rural insurance in Brazil

•Extreme weather events increase the contracting of rural insurance in Brazil.•Regional differences affect the adoption of insurance in Brazil.•Irrigation, cultivated area, and soy production influence insurance contracting.•Subsidies are essential for the adoption of rural insurance.•Conservationis...

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Veröffentlicht in:Global environmental change 2024-12, Vol.89, p.102938, Article 102938
Hauptverfasser: dos Santos, Elizângela Aparecida, Piedra-Bonilla, Elena Beatriz, Barroso, Gabriela Madureira, Silva, Jordão Vieira, Hejazirad, Seyede Parvin, dos Santos, José Barbosa
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Sprache:eng
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Zusammenfassung:•Extreme weather events increase the contracting of rural insurance in Brazil.•Regional differences affect the adoption of insurance in Brazil.•Irrigation, cultivated area, and soy production influence insurance contracting.•Subsidies are essential for the adoption of rural insurance.•Conservationist practices and informal insurance strengthen climate resilience. Brazil’s agricultural, livestock, and forestry production is essential, feeding more than 10% of the global population. However, climate change and extremes affect quality and production, challenging the Sustainable Development Goals of eradicating hunger and poverty. Extreme weather events generate economic and social costs, driving the use of adaptation strategies, with rural insurance being one of the main instruments to manage these risks. This study analyzes the impact of extreme weather events on rural insurance contracting in Brazil, using daily precipitation and temperature data to calculate extreme weather indices and perform panel regressions. The analysis of Minimum Comparable Areas (MCAs) between 2006 and 2016 showed that events such as “Frost” and “Hot Days” significantly increased insurance contracting, especially in the South and Central-West regions. The results highlight the importance of extreme variables and the need to consider regional differences and insurance alternatives. Despite the importance of insurance, increasing financial unviability suggests the need for additional strategies, such as crop diversification, community solidarity, and conservation of agricultural practices.
ISSN:0959-3780
DOI:10.1016/j.gloenvcha.2024.102938