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Econometric analysis of income, productivity and diversification among smallholders in Brazil

Author

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  • Herrera, Gabriel Paes
  • Lourival, Reinaldo
  • da Costa, Reginaldo Brito
  • Mendes, Dany Rafael Fonseca
  • Moreira, Tito Belchior Silva
  • de Abreu, Urbano Gomes Pinto
  • Constantino, Michel

Abstract

Family farming plays important roles in agricultural production and the world’s food security. This paper provides an econometric analysis of income, productivity and diversification of Brazilian smallholders. Using the most updated data from the Ministry of Agrarian Development (MDA) enables a more precise analysis than traditional agri-census data. The database contains approximately 4.7 million family farmers from all regions of the country. We used linear and tobit regression to untangle useful information behind these large datasets. The results demonstrated that the smallholders that are part of an agricultural cooperative or a member of a farmer’s association positively affect income, productivity and diversification. The age of household heads is shown to have a non-linear relationship in the three cases, while the household head being female presented a negative effect in all regressions. Although recent technical assistance showed negative impacts on income and productivity, farmer’s assistance positively affected the likelihood of a smallholder diversifying their production and, therefore, becoming less subject to price imbalances. The results support current views in the field of smallholder farming while presenting marked regional differences of a continental country, enabling policy makers to make better, more informed decisions.

Suggested Citation

  • Herrera, Gabriel Paes & Lourival, Reinaldo & da Costa, Reginaldo Brito & Mendes, Dany Rafael Fonseca & Moreira, Tito Belchior Silva & de Abreu, Urbano Gomes Pinto & Constantino, Michel, 2018. "Econometric analysis of income, productivity and diversification among smallholders in Brazil," Land Use Policy, Elsevier, vol. 76(C), pages 455-459.
    • Handle: RePEc:eee:lauspo:v:76:y:2018:i:c:p:455-459
    DOI: 10.1016/j.landusepol.2018.02.025
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    References listed on IDEAS

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    1. De Carvalho Reis Neves, Mateus & Freitas, Carlos Otavio & De Figueiredo Silva, Felipe, 2021. "Does cooperative membership increase rural income? Evidence from Brazilian agricultural sector," 2021 Annual Meeting, August 1-3, Austin, Texas 314006, Agricultural and Applied Economics Association.
    2. Neves, Mateus & Silva, Felipe de Figueiredo & de Freitas, Carlos Otávio, 2021. "Does Cooperative Membership Increase Rural Income? Evidence from Brazil’s Agricultural Sector," 2021 Conference, August 17-31, 2021, Virtual 315268, International Association of Agricultural Economists.
    3. Mateus de Carvalho Reis Neves & Felipe de Figueiredo Silva & Carlos Otávio de Freitas & Marcelo José Braga, 2021. "The Role of Cooperatives in Brazilian Agricultural Production," Agriculture, MDPI, vol. 11(10), pages 1-15, September.

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