Can credit help small family farming? Evidence from Brazil

摘要

Purpose The purpose of this paper is to evaluate the impact of a Brazilian rural credit program, The National Program for Strengthening Family Farming (PRONAF), on small family farming production. Design/methodology/approach The method is based on a quasi-experimental approach (propensity score matching) applied to 4.1m family farmers in Brazil. Findings Results show that farmers accessing PRONAF tended to be positively selected in terms of several observable characteristics, such as land size and agricultural practices. Moreover, PRONAF had positive and differentiated impacts on agricultural production. The impact was larger in the poorest region when compared to the regions characterized by intensive and commercial farming.