The Pronaf Impact On Rural Poverty In Brazil from 2013 to 2019

This paper aims to analyze the effects of the National Program for the Strengthening of Family Farming (Pronaf)[1] on rural poverty in Brazil in the period of 2013-2019. The methodology used to generate the estimates of the Pronaf-income and Pronaf-inequality elasticities was the dynamic panel model. The study assumes that the Pronaf variable does not affect rural poverty directly, but considers the variation in income and/or the variation in income inequality. The results indicate that increases in income and decreases in income inequality contribute to poverty reduction, with policies aimed at promoting income equality showing greater efficiency. However, the impact of Pronaf credit on poverty reduction is found to be limited, albeit positive but statistically insignificant, in raising rural household per capita income and reducing income inequality. Furthermore, the analysis reveals a persistence of poverty over time, indicating that current income and inequality levels influence future poverty rates. Pronaf credits were found to have a greater impact on income among wealthier and more developed states, while also exacerbating income concentration in those areas. [1] From the Portuguese: Programa Nacional de Fortalecimento da Agricultura Familiar (Pronaf).