Brazil rubber subsidy

Abstract

In Brazil, subsidies have been added to rubber originating from extractive reserves where the rubber tappers act as forest stewards and keep the forest stands intact. The program was designed to help poor communities but has been found to be an effective method in protecting the forest as well. After a decade, the four largest extractive reserves remain intact. The monitoring and reward distribution of the program is based on the amount of rubber collected. The subsidy on rubber tapped in these reserves amounts to 0.40 Reais (approx. US$0.20) per Kg of rubber, of which approximately 70% of the subsidy returns to the state through taxes.