Determinants of income and poverty of farmers in the Ribeira Valley

Abstract

This paper aims to analyze the determinants of income and poverty among farm dwellings in the Ribeira Valley, Paraná, Brazil, in 2007. The data are secondary, and arise from the project University Without Borders: “Family Farming in the Ribeira Valley Territory.” This study analyzed information about 60 families on the characteristics of producers and properties, and on the composition of total income in rural areas: whether it is agricultural, non-agricultural, or for self-consumption. In order to examine the determinants of income and poverty in that region, regressions were estimated by Ordinary Least Squares and the logit model, respectively. It was found that, on average, 42% of total household income came from the non-agricultural activity, demonstrating its importance in the composition of total income. It is noteworthy that total income is influenced by the variables: non-farm income, number of family members, total area of the property, and average education of individuals residing in the property. As for the likelihood of poverty, it is determined by non-monetary income (positive effect), and by the number of family members (negative effect).