Relationship between the demand for agricultural machinery and agricultural policy

Abstract

This paper aims to show how the Brazilian agricultural policy influenced the demand for agricultural machinery, specially tractors and harvesters. It was made by a qualitative and descriptive analysis of how the agricultural machinery sales and amount of agricultural investment credit have been evolved, since the creation of National System of Agricultural Credit to the present with MODERFROTA program. The conclusion was that the agricultural investment credit is one important component into the result of agricultural machinery sector, because the variation of this credit results on variation of sales to tractors and harvesters, although the farmer capitalization and the farmer debt level is another important variable that can explain the variation of agricultural machinery sales.