Impact of rural credit on sustainable transformation of Brazilian agriculture: The case of the Low Carbon Agriculture (LCA) Program in Minas Gerais, Brazil
Marcelo Odorizzi de Campos , Regina Aparecida Leite de Camargo , Camila Fernanda Bassetto , Teresa Cristina Tarlé Pissarra , Carlos Eduardo Pellegrino Cerri , Newton La Scala Jr. , Rouverson Pereira da Silva
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引用次数: 0
Abstract
In Brazil, changes in land use and forests are responsible for more than 70 % of CO2 equivalent emissions. The federal administration created, in 2011, the Low Carbon Agriculture (LCA) Program of rural credit, to finance climate change mitigation and adaptation technologies. Thus, the hypothesis of this work understands that rural credit from the LCA Program was capable, over 8 years, of expanding the adoption of sustainable agricultural practices and, thus, positively impacting land use and occupation in the state of Minas Gerais, Brazil. Therefore, the objectives of this work were: (i) to establish relationships between the rural credit flow of the LCA Program and municipal agricultural practices in Minas Gerais; and (ii) to determine the impact of the LCA Program on the adoption of mitigation technologies and land use in Minas Gerais, for the 2013–2020 time series. The results of this study showed that the municipalities with access to LCA Program credit were those with higher agricultural activity and a greater extent of degraded pasture areas. On average, these municipalities had 0.39 km2 of silviculture area, compared to 0.12 km2 in those without access, and 58.8 cattle per producer, versus 34.9 in non-beneficiary areas. They also concentrated 16.5 % of degraded pastures, while municipalities without credit had 9.6 %. Between 2013 and 2020, there was a 41 % reduction in intermediately degraded pastures and a 13.4 % increase in non-degraded pastures across the state. Thus, it can be concluded that LCA Program credit was statistically relevant for areas in need of recovery, contributing to improved pasture quality and more efficient land use in Minas Gerais. The findings highlight the role of targeted rural credit as a key mechanism to drive and enable land use transitions in agriculture toward more resilient systems adapted to future climate instabilities.
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