Investimento Rural: Crédito do BNDES Contribui para a Intensificação da Agropecuária

This report finds that BNDES credit for agricultural machinery and equipment increases land productivity and encourages the conversion of pasture to crop areas without generally increasing deforestation. The positive impacts on production and productivity are most significant in municipalities with high labor intensity and when the credit is used for labor-saving equipment. However, a slight increase in deforestation was observed in municipalities with very low labor intensity.

• BNDES credit for agricultural machinery and equipment increases agricultural productivity and promotes the intensification of land use without increasing deforestation pressures. Specifically, a 1% increase in the availability of this credit is associated with a 0.18% increase in agricultural land productivity and a 0.08% increase in livestock land productivity. The results indicate a substitution of pasture areas for crop areas, which are generally more productive.
• The impact of BNDES credit on production is more significant in municipalities with a high intensity of labor use. In these municipalities, a 1% increase in credit availability leads to a 0.19% increase in agricultural GDP, a 0.09% increase in agricultural production, and a 0.06% increase in livestock production. In contrast, municipalities with low labor intensity only showed a significant increase in livestock production (0.11%) for the same credit increase.
• Credit specifically for 'labor-saving' equipment (such as tractors and harvesters), which represented 68% of equipment credit between 2005 and 2019, has a more pronounced effect on production and land use. In high-labor-intensity municipalities, this specific credit leads to a 0.38% increase in agricultural production and a 0.34% increase in agricultural GDP (based on quartile analysis).
• There is evidence of a small increase in deforestation when credit is expanded specifically in municipalities with the lowest proportions of workers per area. In the lowest quartile of labor intensity, a 1% increase in credit is associated with a 0.02% increase in crop area and a 0.003% decrease in forest area.
• BNDES Finame is a primary vehicle for these investments; in 2020, it accounted for 57% of BNDES loans to the agricultural sector. Between 2005 and 2019, real credit for equipment increased by 97%, from R$ 4.9 billion to R$ 9.7 billion, peaking at R$ 19.7 billion in 2013.
• Access to BNDES equipment credit is geographically uneven and concentrated. In 2019, 65% of municipalities in the Northeast and 38% in the North had only one credit redistributor. Bradesco is the predominant redistributor in the North, Northeast, and Center-West, while DLL leads in the Southeast and Sicredi in the South.

APA

Souza, P., Sant´Anna, A., Machado, L., Intropidi, B., & Vogt, P. (2022). Investimento Rural: Crédito do BNDES Contribui para a Intensificação da Agropecuária. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2022/05/DQ-INVESTIMENTO-RURAL-BNDES-V02.pdf

Chicago

Souza, Priscila, André Sant´Anna, Luciano Machado, Barbara Intropidi, and Pedro Vogt. Investimento Rural: Crédito do BNDES Contribui para a Intensificação da Agropecuária. Climate Policy Initiative, 2022. https://www.climatepolicyinitiative.org/wp-content/uploads/2022/05/DQ-INVESTIMENTO-RURAL-BNDES-V02.pdf.

Wikipedia

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BibTeX

@techreport{souza2022investimento, author = {Souza, Priscila and Sant´Anna, André and Machado, Luciano and Intropidi, Barbara and Vogt, Pedro}, title = {{Investimento Rural: Crédito do BNDES Contribui para a Intensificação da Agropecuária}}, institution = {Climate Policy Initiative}, year = {2022}, month = may, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2022/05/DQ-INVESTIMENTO-RURAL-BNDES-V02.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }