ASSESSMENT OF CREDIT RESTRICTIONS TO FARMERS IN RURAL SETTLEMENTS´ IN THE WESTERN REGION OF THE STATE OF SÃO PAULO, BRAZIL

Abstract

Conceding of credit is a decisive factor for the development of farmers in rural settlements. The factors that contribute towards obstacles for its concession and default risks in financial modalities are highly relevant. Current analysis comprises data collection and investigation on farmers in rural settlements in the western region of the state of São Paulo, Brazil, specifically in the municipality of Rancharia. The several types of credit for the farmers, especially the PRONAF program, are analyzed to verify the risks inherent to such financial transactions. Statistic techniques, based on the multivariate analysis, were employed to identify variables or their combinations that provide restrictive conditions to credit. Results show the possibility that farmers in rural settlements may be banned from credit depends on the time of permanence on the land, technical follow-up and non-agriculture-based family income (derived from different sources other than land, such as retiree/pensioner).