Outcomes of a Public Program to Support Sustainable Livestock Farming: Evidence from Uruguay

As global demand for beef increases, balancing livestock productivity with environmental sustainability has become a policy priority. In response, Uruguay implemented the Sustainable Family Production Program (PFIS). Between 2015 and 2017, this program provided support to small and medium-sized cattle farmers to invest in technologies and management practices aimed at enhancing both productivity and climate resilience. This study provides the first causal evaluation of a national program designed to promote these dual objectives in the cattle sector. We assess the effect of PFIS on three outcomes: (i) technology adoption, (ii) productivity, and (iii) greenhouse gas emissions intensity. To identify causal effects, we use a regression discontinuity design based on a strict eligibility threshold, using panel data from producers between 2015 and 2020. Although we found no statistically significant effects on beef productivity per hectare or greenhouse gas emissions intensity during the study period, the program significantly increased adoption of good reproductive and herd management practices, including early weaning, controlled mating, and ovarian activity diagnosis. These results highlight both the potential and the limitations of integrated technology transfer programs in promoting sustainable intensification of extensive livestock systems. They also suggest the need for longer-term evaluations to capture potential impacts on productivity and emissions that may emerge as these technologies, particularly reproductive ones, influence aggregate outcomes.