Sustainable agricultural policies and bioinputs: empirical evidences

Abstract

This study analyzes the determinants of bioinput adoption – specifically biological pesticides and inoculants – in Brazil, as well as its market structure, utilizing Logit and Difference-in-Differences models with state-level data (2014–2023). The results indicate that the adoption of biological pesticides is more strongly associated with technical factors and scale of production, whereas inoculant adoption responds primarily to sustainable credit and economic variables. Public policies such as the ABC Plan and the PNB demonstrated an indirect, though non-causal, influence on adoption. Concentration analysis revealed a competitive market for inoculants, but a moderately concentrated one for biological pesticides. It is concluded that sector growth is driven more by market dynamics than by public policies, highlighting the need for better coordination among regulation, credit, and technical assistance.