Questão 19 - FMP Medicina 2021

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1   Rural producers face a wide range of adverse events that expose them to potentially heavy losses. In
agriculture, both natural risks – such as droughts, floods, pests, diseases, and fires – and market risks –
such as price variation – are frequent. While the modernization of the agricultural sector leads to commodity
specialization and the adoption of technologies with higher expected returns, it may also result in a larger
production variance, creating more uncertainty and increasing producers’ exposure to risk. Modernization
has accelerated in Brazil in recent years, raising the importance of risk management instruments.
2   Brazil has a large potential for improving risk mitigation opportunities for its producers, which will be
even more essential in the face of climate change. Improving risk management practices and public policies
could accelerate the process of modernization and sustainability in Brazilian agricultural production.
Government incentives require a design crafted to meet producers’ needs. In this report, Climate Policy
Initiative/Pontifical Catholic University of Rio de Janeiro (CPI/PUC-Rio) researchers analyze the current risk
management instruments and public policies and discuss pathways for improving their impact on Brazilian
agriculture.

Available at: https://www.climatepolicyinitiative.org/publication/risk-management-in-brazilian-agricultureinstruments-public-policy-and-perspectives/. Retrieved on: 1 st Sept. 2020. Adapted.

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