Soybean cropping by family farmers: a new institutional path for rural development in Brazilian Central-West

Abstract

Soybean cropping in Mato Grosso is historically present in large farms. However, in recent years, small farmers have joined this supply chain. In this study, we aimed to identify how small farmers can surpass the paradigm of large-scale production in soybean production in Mato Grosso. A case study in six municipalities in Mato Grosso was conducted to gather data from 72 family farmers. A pooled panel data regression analysis was performed to verify the impact of small farmers solutions in the economic results of soybean. Results showed that small farmers reduce long-term needs of investment in markets of used machines and third-party harvest service market; trading companies contractually provide the short-term inputs, which family farmers can pay for in soybean equivalent; suppling farmers lack financial resources. Economies of scale is present in small farms. In spite of that, prices, climate risks and other environmental problems make it difficult for soybean to increase family farmers competitiveness and sustainability.