Appendix: Closing the Rural Credit Divide

This methodology appendix describes the linear regression models used to analyze PRONAF access among smallholder farmers in Brazil. Using 2017 Agricultural Census data, the research finds that cooperative membership and Technical Assistance and Rural Extension (ATER) significantly increase the proportion of farmers accessing credit, while illiteracy had no significant effect.

• The study used linear regressions with ordinary least squares estimators to determine the share of smallholder farmers accessing PRONAF. The model included state or regional fixed effects, as well as municipal shares of cooperative members and those receiving ATER (Technical Assistance and Rural Extension).
• Quantitative results indicate that both membership in cooperatives and access to ATER have a statistically significant positive impact on the share of smallholders accessing PRONAF across various regions. For example, in the Northern Region, the coefficients for Cooperatives and ATER are 0.24 and 0.27 respectively, both significant at the p<0.01 level.
• Regional analysis shows varying impacts on PRONAF access, with the Southern Region showing a positive coefficient (0.06***), while the Northern (-0.02***), Northeast (-0.02**), and Southeast (-0.01**) regions show negative coefficients.
• Illiteracy was included as a control variable in the linear model but did not produce significant results for any of the regions analyzed.

APA

Leal, A., Assunção, J., & Hoover, N. (2026). Appendix: Closing the Rural Credit Divide. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2026/04/Apendice-Pronaf-EN.pdf

Chicago

Leal, Alan, Juliano Assunção, and Natalie Hoover. Appendix: Closing the Rural Credit Divide. Climate Policy Initiative, 2026. https://www.climatepolicyinitiative.org/wp-content/uploads/2026/04/Apendice-Pronaf-EN.pdf.

Wikipedia

{{cite report |last1=Leal |first1=Alan |last2=Assunção |first2=Juliano |last3=Hoover |first3=Natalie |title=Appendix: Closing the Rural Credit Divide |publisher=Climate Policy Initiative |date=March 2026 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2026/04/Apendice-Pronaf-EN.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{leal2026appendix, author = {Leal, Alan and Assunção, Juliano and Hoover, Natalie}, title = {{Appendix: Closing the Rural Credit Divide}}, institution = {Climate Policy Initiative}, year = {2026}, month = mar, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2026/04/Apendice-Pronaf-EN.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }