Great Concentration of Production 2006 Census

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International Food Policy Research Institute (IFPRI)

The document summarizes findings from a study on gross farm income levels in Brazil using 2006 Census data. It divides farms into four classes based on monthly gross income in minimum wage units: [0,2]; (2,10]; (10,200]; and >200. It provides data on the number and percentage of farms in each class by region. It also lists average monthly gross income per farm in each class and region. Finally, it proposes different economic policy approaches for each income class, focusing on poverty alleviation for the lowest class and export/market opportunities for the highest.

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

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[object Object],[object Object],[object Object],Research team from IFPRI: Embrapa – IFPRI partnership

[object Object],[object Object],[object Object],[object Object],[object Object],Research team from Embrapa: Embrapa – IFPRI partnership

[object Object],[object Object],[object Object],Objectives of the gross income study

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Gross income study : dynamic labor market: Opportunity cost is well known by family. Reasons:

Region Index (%) North 74.40 Northeast 72.55 Center-West 89.50 Southeast 93.28 South 84.11 Brazil 84.59 Urbanization index, 2007

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

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

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]

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]

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]

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

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

[object Object],[object Object],[object Object],[object Object],The low income problem cannot be solved in agriculture only [0,2] minimum wage class

[object Object],[object Object],[object Object],[object Object],[0,2] minimum wage class (cont.)

[object Object],[object Object],[object Object],[object Object],The low income problem can be solved at the farm level [2,10] minimum wage class

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],They can take care of themselves Over 10 minimum wage class

Thank you! Eliseu Alves [email_address] +55 61 3448-4202

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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

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

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

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

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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]

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]

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]

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

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

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22. Thank you! Eliseu Alves [email_address] +55 61 3448-4202

Great Concentration of Production 2006 Census

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