Family Farms and Heterogeneity in Brazilian Agriculture

• In Event: The Agrarian Question, Family Farms, and Public Policies in Brazil

Abstract

The agrarian debate in Brazil has become polarized between those who defend large commercial farms and those who defend the campesinato. It is as if the clock were turned back to the 1980s, prior to the healthy debate that emerged as a result of the growth in importance of “family farming” as a conceptual and policy-relevant category.

This article explores the heterogeneity of Brazilian agriculture. Three main groups are identified: 1) a highly productive and efficient commercial business sector; 2) an efficient and profitable family business sector; and 3) a group of poor family farmers, or campesinos, that largely produce for subsistence, live on their own farms, generate employment for their children, and don’t migrate because their off farm options are bleak. The contrast between the second and third groups is of particular interest. The second group resembles the American family farm. It comprises approximately 450 thousand producers and accounts for 25% of Brazil’s agricultural GDP. On average, these farms utilize 50 hectares, earn net income of around US$25,000 per year, and are highly specialized.

A number of factors lead to the continued coexistence of the three groups. These include the absence of economies of scale in agriculture, low profitability of investments in the sector, a high degree of competition, and significant risks related to climate, pests, and prices. In this environment, no single group is able to monopolize production. The heterogeneity of the sector persists, with each group maintaining its own logic, interests, and policy demands.

Author

• Carlos E Guanziroli, Universidade Federal Fluminense