Great concentration   of  production 2006 Census Explanation: technology or farm size in ha? Eliseu Alves IFPRI Meeting, B...
<ul><li>The role of agricultural research and Embrapa in Brazilian poverty reduction </li></ul>IFPRI research project titl...
<ul><li>Sinshen Diao leader and responsible for step 4; </li></ul><ul><li>Eduardo Magalhães consultant  at IFPRI and respo...
<ul><li>Geraldo da Silva e Souza, leader and responsible for step 4; </li></ul><ul><li>Antônio Flávio Dias Avila responsib...
<ul><li>To  establish gross income classes for the IFPRI research project; </li></ul><ul><li>To give an idea of the groups...
<ul><li>85%  of the  population is urban: urban competition for labor; </li></ul><ul><li>Minimum wage  is required and wel...
Region Index (%) North 74.40 Northeast 72.55 Center-West 89.50 Southeast 93.28 South 84.11 Brazil 84.59 Urbanization index...
 
Region Number (1,000) % North 3,630 11,6 Northeast 14,770 47,1 Center-West 1,789 5,7 Southeast 6,440 20,5 South 4,739 15,1...
Region Farm number % R$/farm North 475,775 9.2 12,923.88 Northeast 2,454,006 47.4 11,578.44 Center-West 317,478 6.1 62,495...
<ul><li>gifmw = gross income by farm by month in minimum wage units </li></ul>Gross income
Regions Frequency Nº Frequency Region (%) Frequency Brazil (%) Production Region (%) gifmw Brazil 3,775,826 72.96 100,0 4....
Obs.: Month value of the minimum wage = R$300.00 (2006). Minimum wage class Number of Farms % R$/farm/month 0 579,024 15.4...
Regions Frequency Nº Frequency Region (%) Frequency Brazil (%) Production Region (%) gifmw Brazil 975,974 18.86 100,00 11....
Regions Frequency Nº Frequency Region (%) Frequency Brazil (%) Production Region (%) gifmw Brazil 423,689 8.19 100.00 84.8...
Regions Frequency Nº Frequency Region (%) Frequency Brazil (%) Production Region (%) gifmw Brazil 22,188 0.43 100.00 51.34...
<ul><li>Economic policies for each of the three minimum wage classes </li></ul>
<ul><li>Income transfer policies: </li></ul><ul><ul><ul><li>Retirement policies; </li></ul></ul></ul><ul><ul><ul><li>Food ...
<ul><li>Whenever possible : </li></ul><ul><li>Small irrigation systems; </li></ul><ul><li>Home industry; </li></ul><ul><li...
<ul><li>New rules for rural credit: operational or investment credit; </li></ul><ul><li>Contract between extension office ...
<ul><li>Competitive interest rate at the international level; </li></ul><ul><li>Training of private extension at research ...
Thank you! Eliseu Alves [email_address] +55 61 3448-4202
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Great Concentration of Production 2006 Census

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Eliseu Alves
University of São Paulo

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Great Concentration of Production 2006 Census

  1. 1. Great concentration of production 2006 Census Explanation: technology or farm size in ha? Eliseu Alves IFPRI Meeting, Bold actions for stimulating inclusive growth, June 2 2010
  2. 2. <ul><li>The role of agricultural research and Embrapa in Brazilian poverty reduction </li></ul>IFPRI research project title : Agreement Embrapa – IFPRI
  3. 3. <ul><li>Sinshen Diao leader and responsible for step 4; </li></ul><ul><li>Eduardo Magalhães consultant at IFPRI and responsible for Step1; </li></ul><ul><li>Daniela Rocha consultant and data support collection at IBGE </li></ul>Research team from IFPRI: Embrapa – IFPRI partnership
  4. 4. <ul><li>Geraldo da Silva e Souza, leader and responsible for step 4; </li></ul><ul><li>Antônio Flávio Dias Avila responsible for step 4; </li></ul><ul><li>Eliane Gomes responsible for step 3. </li></ul><ul><li>Collaborators from Embrapa </li></ul><ul><li>Eliseu Alves, Fernando Garagorry, Cláudio Barroso and Maria Abadia Alves. </li></ul>Research team from Embrapa: Embrapa – IFPRI partnership
  5. 5. <ul><li>To establish gross income classes for the IFPRI research project; </li></ul><ul><li>To give an idea of the groups of farms for which there is in agriculture a solution of the income problem ; </li></ul><ul><li>To classify the farms to fundament the sample design. </li></ul>Objectives of the gross income study
  6. 6. <ul><li>85% of the population is urban: urban competition for labor; </li></ul><ul><li>Minimum wage is required and well known; </li></ul><ul><li>Strong links with the international market; </li></ul><ul><li>Enforcement of the minimum wage law; </li></ul><ul><li>Presence of television, newspaper and radio; </li></ul><ul><li>Social movements . </li></ul>Gross income study : dynamic labor market: Opportunity cost is well known by family. Reasons:
  7. 7. Region Index (%) North 74.40 Northeast 72.55 Center-West 89.50 Southeast 93.28 South 84.11 Brazil 84.59 Urbanization index, 2007
  8. 9. Region Number (1,000) % North 3,630 11,6 Northeast 14,770 47,1 Center-West 1,789 5,7 Southeast 6,440 20,5 South 4,739 15,1 Brazil 31,368 100,0 Rural population, 2007
  9. 10. Region Farm number % R$/farm North 475,775 9.2 12,923.88 Northeast 2,454,006 47.4 11,578.44 Center-West 317,478 6.1 62,495.55 Southeast 922,049 17.8 52,009.71 South 1,006,181 19.5 41,210.64 Brazil 5,175,489 100,0 27,789.50 Number of farms and gross income by farm
  10. 11. <ul><li>gifmw = gross income by farm by month in minimum wage units </li></ul>Gross income
  11. 12. Regions Frequency Nº Frequency Region (%) Frequency Brazil (%) Production Region (%) gifmw Brazil 3,775,826 72.96 100,0 4.04 0.43 North 360,190 75.71 9.54 11.07 0.53 Northeast 2,149,279 87.58 56.92 9.64 0.35 Center-West 216,215 68.10 5.73 1.79 0.46 Southeast 572,859 62.13 15.17 1.99 0.46 South 477,283 47.44 12.64 2.60 0.63 Minimum wage gross income class [0,2]
  12. 13. Obs.: Month value of the minimum wage = R$300.00 (2006). Minimum wage class Number of Farms % R$/farm/month 0 579,024 15.46 0 (0, ½] 2,014,567 51.62 53.64 (1/2. 1] 611,775 17.11 214.57 (1, 2] 570,480 15.81 428.55 Total 3,775,826 100.00 189.00 Subclasses of the [0,2] minimum wage gross income class [0,2]
  13. 14. Regions Frequency Nº Frequency Region (%) Frequency Brazil (%) Production Region (%) gifmw Brazil 975,974 18.86 100,00 11.08 4.53 North 92,799 19,50 9.51 21.79 4.01 Northeast 228,076 9,29 23.37 12.19 4.22 Center-West 71,287 22,45 7,30 5.56 4.30 Southeast 226,625 24,58 23.22 7.83 4.66 South 357,187 35,50 36.60 15.12 4.88 Minimum wage gross income class [2,10]
  14. 15. Regions Frequency Nº Frequency Region (%) Frequency Brazil (%) Production Region (%) gifmw Brazil 423,689 8.19 100.00 84.89 80.04 North 22,786 4.79 5.38 67.13 50.32 Northeast 76,651 3.12 18.09 78.17 80.49 Center-West 29,976 9.44 7.08 92.65 170.35 Southeast 122,565 13.29 28.93 90.18 98.01 South 171,711 17.07 40.52 82.28 55.19 Minimum wage gross income class >10
  15. 16. Regions Frequency Nº Frequency Region (%) Frequency Brazil (%) Production Region (%) gifmw Brazil 22,188 0.43 100.00 51.34 924.37 North 585 0.12 2.64 25.52 745.17 Northeast 3,521 0.14 15.87 49.3 1,112.58 Center-West 4,389 1.38 19.78 73.09 917.99 Southeast 7,830 0.85 35.29 60.36 919.67 South 5,864 0.58 26.42 35.49 697.10 Minimum wage gross income class >200
  16. 17. <ul><li>Economic policies for each of the three minimum wage classes </li></ul>
  17. 18. <ul><li>Income transfer policies: </li></ul><ul><ul><ul><li>Retirement policies; </li></ul></ul></ul><ul><ul><ul><li>Food stamp policies; </li></ul></ul></ul><ul><li>Elimination of restrictions to part time work </li></ul>The low income problem cannot be solved in agriculture only [0,2] minimum wage class
  18. 19. <ul><li>Whenever possible : </li></ul><ul><li>Small irrigation systems; </li></ul><ul><li>Home industry; </li></ul><ul><li>Simple technologies that increase yield; </li></ul>[0,2] minimum wage class (cont.)
  19. 20. <ul><li>New rules for rural credit: operational or investment credit; </li></ul><ul><li>Contract between extension office and farmer or group of farmers with explicit penalties for both parties; </li></ul><ul><li>A plan that integrate farm and home operations for credit purposes; </li></ul><ul><li>The participation of family farmers in extension boards with supervision powers. </li></ul>The low income problem can be solved at the farm level [2,10] minimum wage class
  20. 21. <ul><li>Competitive interest rate at the international level; </li></ul><ul><li>Training of private extension at research units; </li></ul><ul><li>Simplification of the export procedures; </li></ul><ul><li>Reduction of the Brazilian cost: infrastructure, </li></ul><ul><li>Excess of bureaucratic rules and corruption; </li></ul><ul><li>Sound macroeconomic policies. </li></ul><ul><li>Policies to foster the exports and to reach new markets. </li></ul><ul><li>To increase investments in research. </li></ul>They can take care of themselves Over 10 minimum wage class
  21. 22. Thank you! Eliseu Alves [email_address] +55 61 3448-4202
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