Impact of Credit in Rural Settlements of Minas Gerais, Brazil

Objective: The objective of this study is to analyze the impact of credit from the National Agrarian Reform Program (PNRA) on the income of family plots allocated by the National Institute of Agrarian Reform (INCRA) in the state of Minas Gerais, aiming to identify the correlation between the credit provided and the income generated. Theoretical Framework: Credit programs aimed at family farming enable the development of their activities in a sustainable, regulated manner and in compliance with environmental preservation, facilitating the construction and improvement of production systems according to each producer’s needs. Method: The study uses data collected from the RADIS/UFMT Project, in agrarian reform settlements in Minas Gerais state, Brazil, were processed and systematized using the Propensity Score Matching (PSM) regression model, with the use of Stata 16® software. Results and Discussion: The most accessed credit line by the beneficiaries was the Semi-arid line. The hypothesis that credit granted by the National Agrarian Reform Program (PNRA) is positively correlated with the income of plots allocated to families settled by INCRA is confirmed, showing an approximate 19% increase in the income of plots compared to those without access to credit. That is, for every R$1.00 of credit provided to the plot, there is an approximate increase of R$0.19 in income.