The Impact of Conglomerate farming on the Poor: Empirical Evidence from Brazil Soy Sector

Abstract

This paper provides the first econometric results which show that during the period 1976-2013, the conglomerate farming of soybeans aggravated poverty in Brazil. It was found that the impact of soy on poverty in the north of the country, where land consolidation is active, is precisely opposite that of the south, where family farming dominates. The result directly contradicts mainstream views that smallholder farmers losses would be offset by gains from the trickle-down effect. Based on the findings of this study, a necessity is raised that family farming be supported to help alleviate poverty.