The effect of farm size and farmland use on agricultural diversification: a spatial analysis of Brazilian municipalities

Brazilian agriculture is characterized by the prevalence of small farms and regions with a high degree of rurality and dominance of the agricultural sector in the economy. These two characteristics affect the diversity of agricultural production in the country. Specifically, the article aims to anal...

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Bibliographic Details
Published in:Agricultural and food economics 2024-08, Vol.12 (1), p.27-21, Article 27
Main Authors: Parré, José Luiz, Chagas, André Luis Squarize, Arends-Kuenning, Mary Paula
Format: Article
Language:English
Subjects:
Agricultural Economics
Agricultural industry
Agricultural land
Agricultural production
Agriculture
Brazil
Crop diversification
Demand analysis
Diversification
Diversification-index
Economics
Economics and Finance
Farms
Food security
Municipalities
Panel data
Rurality
Small farms
Spatial analysis
Spatial regression
Technology assessment
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Summary:Brazilian agriculture is characterized by the prevalence of small farms and regions with a high degree of rurality and dominance of the agricultural sector in the economy. These two characteristics affect the diversity of agricultural production in the country. Specifically, the article aims to analyze the effects of size farm and farmland use on agricultural diversification and the effects of demand and technology adopted by farmers. The database encompasses 4298 Brazilian municipalities from 1996 to 2017 (the last three agricultural censuses). Empirically, we consider spillover effects by estimating spatial models at the municipal level using panel data, highlighting the importance of location and neighborhood. The study’s findings indicate a tendency toward local concentration of agricultural production in the country, despite the balance between municipalities with diversified and concentrated production. The results showed a significant effect of small farms and the municipalities’ rurality degree on the agricultural output diversification. The study provides insights into the discussion on measures to strengthen support for small properties and regions that diversify crops to ensure economic efficiency and food security.
ISSN:2193-7532
2193-7532
DOI:10.1186/s40100-024-00323-9