The evolving role of large and medium farms on Brazilian agriculture

The evolving role of large and medium farms on Brazilian agriculture

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Article ID: iaor20164898
Volume: 47
Issue: S1
Start Page Number: 215
End Page Number: 225
Publication Date: Nov 2016
Journal: Agricultural Economics
Authors: ,
Keywords: economics, statistics: empirical, statistics: inference
Abstract:

We use Brazilian agricultural censuses data since 1970 to describe land structure evolution in Brazil, focusing on the most important agricultural commodities and livestock products across regions. The analysis reveals a remarkable stability in the number of farms in the period, as well as in the structure of land distribution across farm sizes, with a persistence of a dual agricultural structure. Land distribution, as measured by the GINI index, has changed very little and is still very high. The number of large farms is increasing significantly in time, while the number of farms with area below 500 ha changed little in the 1970–2006 period. Medium‐sized and large farms, although heavily outweighed in numbers, account for the highest share of annual crop production currently, and their share in crop (annual plus permanent) production value increased between 1980 and 2006, while the same share decreased for smaller farms. We conclude that the observed stability will probably reduce in the future, as economic forces will likely change the balance in favor of an increase in the number of large farms. This is an issue of obvious political importance, especially considering the importance of the smaller farms for employment in agriculture.

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