Abstract

The underdevelopment of the Northeast Region of Brazil has resulted in one of the highest concentrations of poverty in the nation, with more than seventeen of its roughly forty-two million people living below the poverty line. The lack of economic diversification and the reliance of the working class on agriculture has limited economic growth. Through the credit access program: Agroamigo of the development bank, the Northeast Bank of Brazil, credit is being provided to the local population to increase their economic development opportunities. Due to the accumulating economic, ecological, and societal challenges that agricultural systems in Northeast Brazil face, resilience is paramount to the long-term viability of farming operations. The sector that supports millions in the region and the credit program's success. Using the resilience assessment framework, the purpose of this paper is to provide an assessment of the impact of PRONAF and Agroamigo's credit program concerning farm systems' specific challenges as well as the farming system's desired economic functions. Data from the 1995 and 2006 agricultural censuses provided by the Brazillian Institute of Geography and Statistics was posited in an OLS regression model to examine changes in the farming system before and after the introduction of the credit access program. The study concludes that even though access to credit through Agroamigo increases the chances of insertion in the agricultural markets and stimulates production itself, it has done so at a cost to ecological resilience. Furthermore, the program’s portfolio stands to weaken resilience in the long-term and for the poorest of family farms: contributing to industrialization and consolidation. Further supporting microfinance credit programs must include resilience thinking into their operations to sustainably develop farming systems over time and directly reach the most impoverished people.

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