Publication: Brazil Rural Finance Policy Note
Date
2020-07-01
ISSN
Published
2020-07-01
Author(s)
World Bank
Abstract
This policy note (PN) provides an
analysis of the rural finance system in Brazil. The PN aims
to inform policymaking on agriculture finance policies at a
relevant time for the reform agenda. Its main objective is
to provide recommendations on potential reform areas for
agriculture finance, in order to: (a) enhance the targeting
of public resources; (b) reduce the distortions caused by
agricultural finance policies to the financial sector; and
(c) crowd- in private sector financing for agriculture. A
separate analytical piece is being conducted on decoupling
agricultural production and deforestation, analyzing how
credit impacts the rural economy, land use, and
deforestation, complementing the current scope of this PN.
The note is structured as follows: section one gives
introduction. Section two gives a description of the
structure of agriculture sector in Brazil highlighting the
geographic and farm-size heterogeneities, as well as the
challenges stemming from climate change. Section three
discusses the sector’s access to finance and focuses on how
regional and farm heterogeneities affect differences in
access to credit. Section four, focuses on public policies
aimed at supporting rural finance. Section five outlines,
based on the previous analyses, policy recommendations for
reforming agricultural finance.
Citation
“World Bank. 2020. Brazil Rural Finance Policy Note. © World Bank, Washington, DC. http://hdl.handle.net/10986/34195 License: CC BY 3.0 IGO.”