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Federal subsidies given to Brazilian agriculture in the period from 2003 to 2019

Abstract

The Federal Government has created new programs of rural credit, minimum price policy and rural insurance since 1990s that are partially run by private sector, which receives Federal subsidies (regulated by Law 8,427 issued in 1992). This paper aims to analyze the evolution of economic subsidies granted to agriculture in Brazil in the period from 2003 to 2019 through a documentary and explanatory research and making using of observational, statistical and interpretive methods to deal with Ministry of Economy´s dataset. It was found that: (1st) the agricultural sector has reduced its share into the Federal Government´s grants, declining from 9% in 2003 to 1.8% in 2019; (2) most federal subsidies for agriculture are granted to the Rural Credit Programs; (3) the granting of interest rate equalization has been in favor of family farming in recent years, while the granting of price equalization has favored non-family farming. These findings are coherent with the new private-backed support given to agricultural policy since the mid-1990.

Keywords:
Agricultural policy; economic subsidies; rural credit

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