Determinants of the use of rural credit through the National Family Farming Strengthening Program in 2014

Abstract

In the context of the importance of the National Program for Strengthening Family Agriculture (Pronaf) as a tool to promote family farming, the present paper analyzes the determinants of the use of rural credit through Pronaf in 2014. Through data from the National Survey By Household Samples (PNAD) for the year 2014, a descriptive statistical analysis was carried out in order to evaluate the profile of the Brazilian family farmer; And the probability of using rural credit through the program for different profiles of family farmers was simulated using an econometric Logit model. The results show that Brazilian family farmers can be characterized as a vulnerable public financially and socially. The results of the econometric analysis confirm the hypothesis that the producer profile has a statistically significant effect on the probability of using Pronaf. We identified positive effects resulting from increased schooling and ownership of the title of the enterprise; And negative effects of female gender and non-white skin color. The effects of the different marketing channels were greater the greater the stability offered, the greater the probability of using Pronaf associated with the farmers who sell to the government, and the smaller ones associated with those that sell directly to the consumer, or to intermediaries. It is concluded that the effectiveness of Pronaf as a financing program demands, in addition to the credit supply, comprehensive technical assistance and administrative capacity-building actions, as well as specific interventions for more vulnerable groups, such as women and non-white individuals.