IDEAS home Printed from https://ideas.repec.org/a/eee/lauspo/v92y2020ics0264837718313838.html
   My bibliography  Save this article

Assessing the effectiveness of rural credit policy on the adoption of integrated crop-livestock systems in Brazil

Author

Listed:
  • Carrer, Marcelo José
  • Maia, Alexandre Gori
  • de Mello Brandão Vinholis, Marcela
  • de Souza Filho, Hildo Meirelles

Abstract

This study analyzes the effectiveness of rural credit policy to increase the adoption of ICLS. Analyzes are based on a survey with 175 farmers in the State of São Paulo, Brazil. Our estimates suggest that rural credit has positive and relevant impacts on the adoption of ICLS. In turn, the adoption of these systems may also involve investments in fixed capital and increases in operational costs, which create additional demand for rural credit. Other factors, such as access to extension policy, production scale, ex-ante perceptions, and market infrastructure also explain ICLS adoption. The access to rural credit policy is also determined by dependence on farm income, farmer’s perception of transaction costs, and supply of credit in the municipality. The study finally discusses important implications for the devising of rural credit policies and the diffusion of sustainable production systems in developing countries.

Suggested Citation

  • Carrer, Marcelo José & Maia, Alexandre Gori & de Mello Brandão Vinholis, Marcela & de Souza Filho, Hildo Meirelles, 2020. "Assessing the effectiveness of rural credit policy on the adoption of integrated crop-livestock systems in Brazil," Land Use Policy, Elsevier, vol. 92(C).
    • Handle: RePEc:eee:lauspo:v:92:y:2020:i:c:s0264837718313838
    DOI: 10.1016/j.landusepol.2020.104468
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264837718313838
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.landusepol.2020.104468?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. de Souza Filho, Hildo Meirelles & Carrer, Marcelo José & Saes, Maria Sylvia Macchione & Gomes, Leonardo Augusto de Vasconcelos & Nicolella, Alexandre Chibebe, 2019. "Performance heterogeneity and strategic orientation: An analysis of small farmers of an agrarian reform project in Brazil," Land Use Policy, Elsevier, vol. 86(C), pages 23-30.
    2. Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-298, January.
    3. Rachael D. Garrett & Meredith Niles & Juliana Gil & Philip Dy & Julio Reis & Judson Valentim, 2017. "Policies for Reintegrating Crop and Livestock Systems: A Comparative Analysis," Sustainability, MDPI, vol. 9(3), pages 1-22, March.
    4. Michael R. Carter & Pedro Olinto, 2003. "Getting Institutions “Right” for Whom? Credit Constraints and the Impact of Property Rights on the Quantity and Composition of Investment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 173-186.
    5. Eduardo Rodrigues de Castro & Erly Cardoso Teixeira, 2012. "Rural credit and agricultural supply in Brazil," Agricultural Economics, International Association of Agricultural Economists, vol. 43(3), pages 293-302, May.
    6. Zeller, Manfred & Diagne, Aliou & Mataya, Charles, 1998. "Market access by smallholder farmers in Malawi: implications for technology adoption, agricultural productivity and crop income," Agricultural Economics, Blackwell, vol. 19(1-2), pages 219-229, September.
    7. Porgo, Mohamed & Kuwornu, John K.M. & Zahonogo, Pam & Jatoe, John Baptist D. & Egyir, Irene S., 2018. "Credit constraints and cropland allocation decisions in rural Burkina Faso," Land Use Policy, Elsevier, vol. 70(C), pages 666-674.
    8. Daniel Ayalew Ali & Klaus Deininger & Marguerite Duponchel, 2014. "Credit Constraints and Agricultural Productivity: Evidence from rural Rwanda," Journal of Development Studies, Taylor & Francis Journals, vol. 50(5), pages 649-665, May.
    9. Adjognon, Serge G. & Liverpool-Tasie, Lenis Saweda O. & Reardon, Thomas A., 2017. "Agricultural input credit in Sub-Saharan Africa: Telling myth from facts," Food Policy, Elsevier, vol. 67(C), pages 93-105.
    10. Hoff, Karla & Stiglitz, Joseph E, 1990. "Imperfect Information and Rural Credit Markets--Puzzles and Policy Perspectives," The World Bank Economic Review, World Bank, vol. 4(3), pages 235-250, September.
    11. Manfred Zeller & Aliou Diagne & Charles Mataya, 1998. "Market access by smallholder farmers in Malawi: implications for technology adoption, agricultural productivity and crop income," Agricultural Economics, International Association of Agricultural Economists, vol. 19(1-2), pages 219-229, September.
    12. Stephen R. Boucher & Catherine Guirkinger & Carolina Trivelli, 2009. "Direct Elicitation of Credit Constraints: Conceptual and Practical Issues with an Application to Peruvian Agriculture," Economic Development and Cultural Change, University of Chicago Press, vol. 57(4), pages 609-640, July.
    13. Abdul-Hanan Abdallah, 2016. "Does credit market inefficiency affect technology adoption? Evidence from Sub-Saharan Africa," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 76(4), pages 494-511, November.
    14. Petrick, Martin, 2004. "Farm investment, credit rationing, and governmentally promoted credit access in Poland: a cross-sectional analysis," Food Policy, Elsevier, vol. 29(3), pages 275-294, June.
    15. Carrer, Marcelo José & Souza Filho, Hildo Meirelles de & Vinholis, Marcela de Mello Brandão, 2013. "Determinantes da Demanda de Crédito Rural por Pecuaristas de Corte no Estado de São Paulo," Brazilian Journal of Rural Economy and Sociology (Revista de Economia e Sociologia Rural-RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 51(3), pages 1-24, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Olagunju, Kehinde Oluseyi & Olagunju, Kehinde Ademola & Ogunniyi, Adebayo Isaiah & Omotayo, Abiodun Olusola & Oyetunde-Usman, Zainab, 2023. "To own or not to own? Land tenure security and production risk in small-scale farming," Land Use Policy, Elsevier, vol. 127(C).
    2. Rossi, Fabiana Ribeiro & Filho, Hildo Meirelles de Souza & Miranda, Bruno Varella & Carrer, Marcelo José, 2020. "The role of contracts in the adoption of irrigation by Brazilian orange growers," Agricultural Water Management, Elsevier, vol. 233(C).
    3. Pontes, Laíse da Silveira & Porfírio-da-Silva, Vanderley & Moletta, José Luiz & Telles, Tiago Santos, 2021. "Long-term profitability of crop-livestock systems, with and without trees," Agricultural Systems, Elsevier, vol. 192(C).
    4. Júlia Graziela da Silveira & Sílvio Nolasco de Oliveira Neto & Ana Carolina Barbosa do Canto & Fernanda Figueiredo Granja Dorilêo Leite & Fernanda Reis Cordeiro & Luís Tadeu Assad & Gabriela Cristina , 2022. "Land Use, Land Cover Change and Sustainable Intensification of Agriculture and Livestock in the Amazon and the Atlantic Forest in Brazil," Sustainability, MDPI, vol. 14(5), pages 1-23, February.
    5. Perosa, Bruno & Newton, Peter & Carrer, Marcelo José, 2021. "Access to information affects the adoption of integrated systems by farmers in Brazil," Land Use Policy, Elsevier, vol. 106(C).
    6. Dario Schulz & Jan Börner, 2023. "Innovation context and technology traits explain heterogeneity across studies of agricultural technology adoption: A meta‐analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(2), pages 570-590, June.
    7. Masaood Moahid & Ghulam Dastgir Khan & Yuichiro Yoshida & Niraj Prakash Joshi & Keshav Lall Maharjan, 2021. "Agricultural Credit and Extension Services: Does Their Synergy Augment Farmers’ Economic Outcomes?," Sustainability, MDPI, vol. 13(7), pages 1-23, March.
    8. Jordane Aparecida Vieira dos Reis & Aaron Kinyu Hoshide & John Robert Vreyens & André Soares de Oliveira & Vanessa Aparecida Moreira de Barros & Wininton Mendes da Silva & Luana Molossi & Jessica Lima, 2023. "Training Sources and Preferences for Agricultural Producers and Professionals in Middle-North Mato Grosso, Brazil," Sustainability, MDPI, vol. 15(6), pages 1-23, March.
    9. Gori Maia, Alexandre & Eusebio, Gabriela dos Santos & Fasiaben, Maria do Carmo Ramos & Moraes, Andre Steffens & Assad, Eduardo Delgado & Pugliero, Vanessa Silva, 2021. "The economic impacts of the diffusion of agroforestry in Brazil," Land Use Policy, Elsevier, vol. 108(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Balana, Bedru & Oyeyemi, Motunrayo, 2021. "Credit Constraints and Adoption of Agricultural Technologies in Developing Countries? Evidence from Nigeria," 2021 Conference, August 17-31, 2021, Virtual 315347, International Association of Agricultural Economists.
    2. Unal Seven & Semih Tumen, 2020. "Agricultural Credits And Agricultural Productivity: Cross-Country Evidence," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 65(supp01), pages 161-183, December.
    3. Perosa, Bruno & Newton, Peter & Carrer, Marcelo José, 2021. "Access to information affects the adoption of integrated systems by farmers in Brazil," Land Use Policy, Elsevier, vol. 106(C).
    4. Porgo, Mohamed & Kuwornu, John K.M. & Zahonogo, Pam & Jatoe, John Baptist D. & Egyir, Irene S., 2018. "Credit constraints and cropland allocation decisions in rural Burkina Faso," Land Use Policy, Elsevier, vol. 70(C), pages 666-674.
    5. Abbi M. Kedir & Ibrahim,Gamal, 2012. "Household-Level Credit Constraints in Urban Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 20(1), September.
    6. Kenneth, Akankwasa & Gerald, Ortmann & Edilegnaw, Wale & Wilberforce, Tushemereirwe, 2012. "Ex-Ante Adoption of New Cooking Banana (Matooke) Hybrids in Uganda Based on Farmers' Perceptions," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 123302, International Association of Agricultural Economists.
    7. Conning, Jonathan & Udry, Christopher, 2007. "Rural Financial Markets in Developing Countries," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 3, chapter 56, pages 2857-2908, Elsevier.
    8. Diana Fletschner & Catherine Guirkinger & Steve Boucher, 2010. "Risk, Credit Constraints and Financial Efficiency in Peruvian Agriculture," Journal of Development Studies, Taylor & Francis Journals, vol. 46(6), pages 981-1002.
    9. Simtowe, Franklin & Zeller, Manfred, 2006. "The Impact of Access to Credit on the Adoption of hybrid maize in Malawi: An Empirical test of an Agricultural Household Model under credit market failure," MPRA Paper 45, University Library of Munich, Germany.
    10. Hu, Lifang & Lopez, Rigoberto A. & Zeng, Yinchu, 2020. "Determinants of credit constraints for agricultural wholesalers in China," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 23(4), June.
    11. Yusuf Ibrahim Kofarmata & Shri Dewi Applanaidu & Sallahuddin Hassan, 2016. "Determinants of Demand for Credit: A Conceptual Review," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 3(1), pages 6-10.
    12. Dorward, Andrew, 2012. "Conceptualising the Effects of Seasonal Financial Market Failures and Credit Rationing in Applied Rural Household Models," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 51(2), pages 1-21, May.
    13. Anh, Nguyen Tuan & Gan, Christopher & Anh, Dao Le Trang, 2022. "Multi-market credit rationing: The determinants of and impacts on farm performance in Vietnam," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 159-173.
    14. S?ren Marcus Pedersen & Kim Martin Lind & Orjon Xhoxhi & Attila Yazar & Sven-Erik Jacobsen & Jens Erik ?rum, 2020. "Introducing quinoa in Turkey - farmers perception in the region of Adana," Economia agro-alimentare, FrancoAngeli Editore, vol. 22(1), pages 1-24.
    15. Beke, Tite Ehuitché, 2011. "Institutional constraints and adoption of improved rice varieties: Econometric evidence from Ivory Coast," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 92(2).
    16. Balana, Bedru B. & Mekonnen, Dawit & Haile, Beliyou & Hagos, Fitsum & Yimam, Seid & Ringler, Claudia, 2022. "Demand and supply constraints of credit in smallholder farming: Evidence from Ethiopia and Tanzania," World Development, Elsevier, vol. 159(C).
    17. Jiang Du & Miao Zeng & Zhengjuan Xie & Shikun Wang, 2019. "Power of Agricultural Credit in Farmland Abandonment: Evidence from Rural China," Land, MDPI, vol. 8(12), pages 1-14, December.
    18. Simtowe, Franklin & Zeller, Manfred & Diagne, Aliou, 2009. "The impact of credit constraints on the adoption of hybrid maize in Malawi," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 90(1).
    19. Reyes, Alvaro & Lensink, Robert & Kuyvenhoven, Arie & Moll, Henk, 2012. "Impact of Access to Credit on Farm Productivity of Fruit and Vegetable Growers in Chile," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126217, International Association of Agricultural Economists.
    20. Matuschke, Ira & Mishra, Ritesh R. & Qaim, Matin, 2007. "Adoption and Impact of Hybrid Wheat in India," World Development, Elsevier, vol. 35(8), pages 1422-1435, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:lauspo:v:92:y:2020:i:c:s0264837718313838. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joice Jiang (email available below). General contact details of provider: https://www.journals.elsevier.com/land-use-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.