This report explains about theagriculture productivity growth in Brazil.Agriculture hasbeen an island of success in terms of productivity growth inthe last decades compared to other sectors of the Brazilianeconomy and compared to other country’s agriculturesector.Agriculture productivity growth in recent decades inBrazil has been mainly driven by investments in agricultureinnovation, facilitation of sector financing, and tradeliberalization. Trade liberalization has shown to be animportant factor in the growth of agriculture productivityin recent decades, which can serve as an importantexperience for other Brazilian economic sectors that remainrelatively close to trade. Agriculture productivity has roomto grow further, improving productivity of lagging mid-sizefarmers and regions, reforming agriculture policies towardsagriculture financing, agrologistics, and research anddevelopment(R&D).Experience within Brazil shows thatagriculture productivity can continue to grow withoutdepleting natural capital nor further increasinggreenhousegas (GHG) emissions. Unlike the structural economictransformation of other countries, Brazilian agricultureproductivity growth has been a net job creator. Agricultureproductivity growth in Brazil can therefore continue itspositive upward trend, while being environmentallysustainable, creating jobs, and increasing incomes for therural poor.The motivation for this report is to explore theevolution and source of the strong agriculture productivitygrowth that has occurred in Brazil in recent decades,identifying opportunities and challenges for futuredevelopment of the sector. The goal is to look foropportunities to accelerate agriculture productivity growth,to have an increased impact on sector growth, jobs,environmental sustainability, and poverty reduction, as wellas potentially to shed light on lessons that can contributeto efforts to boost productivity in other sectors withinBrazil. The report is divided into five sections. Followingthis introduction, Section two describes the evolution andsources of agriculture productivity growth in recent years;Section three evaluates the contributions of differentfactors of production, such as natural, human and physicalcapital; Section four explores the opportunities for furthermaximizing agriculture growth in Brazil through increases inproductivity; and Section five presents conclusions andpolicy recommendations on how to further maximizeagriculture productivity in Brazil while having positivesocial (poverty reduction and jobs) and environmental impacts.
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