PRODUCTION AND INCOME IN THE SANTA TEREZA SETTLEMENT, PORANGATU MUNICIPALITY, GOIÁS STATE, BRAZIL

Abstract

This research aimed to study the economic performance of the family farming at Santa Tereza settlement, Porangatu, North of Goiás. Data were collected interviewing 45 families, in the 2001/2002 growing season. Factor analysis and a multiple regression model were used to explain the business profitability. The Santa Tereza settlement presents low rainfall, scarce water sources and a small market for their products. Farmers received government investment and operating capital, but did not receive technical assistance or human capital training. Their main activities are dairy, swine, poultry, rice and corn production. The small amount of working capital induces the adoption of labor intensive technology and small production scale (47.9% of the area is cultivated), and, as a consequence, 77.5% of the family labor is not used. This explains the low productivity levels and the high risk of the annual crops, although, all agricultural activities presented positive gross margin amounting to R$ 2,188.00 per year. Dairy was the only activity which presented positive net income. Retirement income represents 65% of the family income. Factor and regression analyses showed that technical efficiency, use of land resources, and family labor are directly related to better economic results, while annual crops and hired labor have negative effect on farm profitability.

KEY-WORDS: Land reform settlement; production and income; factor analysis.