Adoption level of agroforestry systems in Brazil and the rural credit policy

To promote sustainable farming practices, including agroforestry systems (AGF), Brazil launched the Low Carbon Agriculture Program (ABC Program). AGF integrates agricultural, livestock, and forestry activities in the same area, aiming, for instance, to increase CO2 sequestration and reduce greenhouse gas emissions. This study aimed to verify whether the ABC Program contributed to the expansion of AGF areas in Brazil. Data on the number and total area of farms with AGF from the 2006 and 2017 Agricultural Censuses, data on the values and number of contracts allocated to the ABC Program, and those specific to the integrated systems credit line from the Rural Credit Data Matrix of the Central Bank of Brazil were analyzed. The findings revealed an expansion of AGF areas, particularly in Northeast Brazil, and dispersion to other regions, notably Mato Grosso and Mato Grosso do Sul states. Econometric estimates confirmed that this expansion was heterogeneous across regions but not significantly associated with ABC Program credit. Most microregions did not access these resources, with those that did primarily in the Midwest and South. Consequently, the AGF expansion in Northeast Brazil was not driven by the ABC Program's rural credit.