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

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

Land Use Policy, 2020, vol. 92, issue C

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.

Keywords: Rural credit; Integrated crop-livestock systems (ICLS); Sustainable production systems; Technology adoption (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:lauspo:v:92:y:2020:i:c:s0264837718313838

DOI: 10.1016/j.landusepol.2020.104468

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