Agriculture and Adaptation to Climate Change: The Role of Insurance and Technology Dissemination in Brazilian Risk Management

This study examines potential policy instruments for agricultural climate change adaptation based on empirical analysis of a theoretical model for Brazil. Risk management approaches, such as agricultural insurance and research and development investments in technological change, particularly call for analysis. The results for a weather index effect on loss of profits and amount of insurance indicate that it is important to insure against droughts and against temperature extremes. In addition, extensive research and development investment is found to be necessary to mitigate the effects of climate change on almost all agricultural sectors, particularly soy, cattle, maize and milk production.