Brazilian Family Farming Agriculture in the Biodiesel Production: A Portrait of Regional Possibilities

Abstract

Brazil is a country deeply labeled by economic and social contradictions when the distinct regions are placed in comparison. The living conditions of peasant vary greatly according to region where he lives. After the promulgation of the constitution of 1988 policies aimed to remedy these regional imbalances, mainly re- lated to rural people have been settled. In this sense, one of the governmental initiatives to lower this problem was the encouraging incentive program to cultivate castor beans and other crops by family farmers to produce biodiesel to share 50% of the mixture with mineral diesel in the proportion defined by law. The blend was initially 2% starting in 2006 and 5% until 2012. The Brazilian consumption of diesel oil in the 2006 was approximately 40 billions of liters in the transportation, agriculture and others sectors, so that a market of 800 millions of liters of biodiesel was suddenly created at attractive prices with total exemption from federal taxes. This paper analyzes what actually such market means in economic terms to various regions of Brazil. Two regions – North and Midwest still display a high degree of poverty for small farmers. The national biodiesel program may represent an interesting economical alternative for them.