The Role of Cooperatives in Brazilian Agricultural Production

Mateus Neves, Felipe de Figueiredo Silva, Carlos Otávio de Freitas and Marcelo Braga
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Felipe de Figueiredo Silva: Department of Agricultural Sciences, Clemson University, 235 McAdams Hall, Clemson, SC 29634, USA
Carlos Otávio de Freitas: Departamento de Ciências Administrativas, Universidade Federal Rural do Rio de Janeiro, BR 465 Rd., Km 07, Seropédica 23890-000, Brazil

Agriculture, 2021, vol. 11, issue 10, 1-15

Abstract: Much of the established literature on agricultural cooperatives describes their myriad contributions to farmers’ economic performance. In Brazil, one of the world’s leading agricultural exporters, there were more than 1500 agricultural cooperatives with 1 million members in 2020, and in 2017, 11% of all Brazilian farms were associated with one of these cooperatives. In this paper, we estimate the factors associated with the municipality share of cooperative membership (MSCM) and how municipality-level production value changes with MSCM. Our analysis is at the municipality level using aggregate data from the 2017 Agricultural Census. We find that in Brazil, higher education and smaller property sizes are associated with membership in agricultural cooperatives. To estimate how MSCM is associated with farm profits, we use a generalized propensity score and find that an increase in MSCM increases net municipal farm income, driven mostly by an increase in the value of agricultural production compared to a smaller increase in the cost of production.

Keywords: agricultural markets; generalized propensity score; cooperative organizations (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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