Author
Listed:
- Zeller, Manfred
- Schiesari, Carolina
Abstract
The family farming sector in Brazil is an important player in the country’s economy, especially in poor rural areas., The government has created the National Program for Strengthening Family Agriculture (PRONAF) to stimulate the development of family farming in Brazil. It a credit program that offers loans at a subsidized interest rate. Previous studies have shown that wealthier farmers and more developed regions have more access to subsidized credit. Due to this apparently unequal allocation of PRONAF resources, the study aims to analyze, through econometric regressions and interviews with specialists, the underlying determinants for the unequal credit allocation across the municipalities in Brazil. Results indicate that wealth and knowledge of farmers are significant determinants of loan size, whereas municipalities that represent a high risk have received significantly fewer resources from PRONAF per household head. Thereby, we can conclude that PRONAF’s operations are not fulfilling their pro-poor objectives of targeting poor farmers and municipalities. Progress in infrastructure and institutions to reduce risks, enhancement of farmers’ qualifications and organization, better access to markets and agroindustry, and improvements in rural extension services are found to be essential to increasing the access to PRONAF’s credit.
Suggested Citation
Zeller, Manfred & Schiesari, Carolina, 2020.
"The unequal allocation of PRONAF resources: which factors determine the intensity of the program across Brazil?,"
Revista de Economia e Sociologia Rural (RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 58(3), January.
Handle:
RePEc:ags:revi24:341115
DOI: 10.22004/ag.econ.341115
Download full text from publisher
Corrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:revi24:341115. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
We have no bibliographic references for this item. You can help adding them by using this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/inrapfr.html .
Please note that corrections may take a couple of weeks to filter through
the various RePEc services.