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Assessing the effectiveness of rural credit policy on the adoption of integrated crop-livestock systems in Brazil

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  • Carrer, Marcelo José
  • Maia, Alexandre Gori
  • de Mello Brandão Vinholis, Marcela
  • de Souza Filho, Hildo Meirelles

Abstract

This study analyzes the effectiveness of rural credit policy to increase the adoption of ICLS. Analyzes are based on a survey with 175 farmers in the State of São Paulo, Brazil. Our estimates suggest that rural credit has positive and relevant impacts on the adoption of ICLS. In turn, the adoption of these systems may also involve investments in fixed capital and increases in operational costs, which create additional demand for rural credit. Other factors, such as access to extension policy, production scale, ex-ante perceptions, and market infrastructure also explain ICLS adoption. The access to rural credit policy is also determined by dependence on farm income, farmer’s perception of transaction costs, and supply of credit in the municipality. The study finally discusses important implications for the devising of rural credit policies and the diffusion of sustainable production systems in developing countries.

Suggested Citation

  • Carrer, Marcelo José & Maia, Alexandre Gori & de Mello Brandão Vinholis, Marcela & de Souza Filho, Hildo Meirelles, 2020. "Assessing the effectiveness of rural credit policy on the adoption of integrated crop-livestock systems in Brazil," Land Use Policy, Elsevier, vol. 92(C).
    • Handle: RePEc:eee:lauspo:v:92:y:2020:i:c:s0264837718313838
    DOI: 10.1016/j.landusepol.2020.104468
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    6. Dario Schulz & Jan Börner, 2023. "Innovation context and technology traits explain heterogeneity across studies of agricultural technology adoption: A meta‐analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(2), pages 570-590, June.
    7. Masaood Moahid & Ghulam Dastgir Khan & Yuichiro Yoshida & Niraj Prakash Joshi & Keshav Lall Maharjan, 2021. "Agricultural Credit and Extension Services: Does Their Synergy Augment Farmers’ Economic Outcomes?," Sustainability, MDPI, vol. 13(7), pages 1-23, March.
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