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Buffering rural producer associations against financial setbacks – Evidence from Brazil

Caio Piza's picture

Poverty in Brazil is disproportionately concentrated in rural areas.  Although rural households account for only 15% of the population, 45% of them fall within the nation’s poorest quartile.  A large proportion of the rural population relies on small scale agriculture for their livelihoods, highlighting the importance of inclusive growth in the sector in contributing to poverty reduction. Accessing markets is one of the major development challenges faced by small producers (WB 2016). As a result of limited commercial activities and viable business plans, opportunities to access financial services to invest are limited. When rural organizations are asked what their main limitation is to the development of new projects or to diversification of the services offered, 56% of the organizations stated that a lack of resources - financial, physical, and human- was the main limitation.