RURAL SAVINGS - BRAZIL

The main hypothesis to be tested is that the introduction of new technology especially modern inputs has dramatically changed the savings-investment picture on farms in Sao Paulo. The specific objectives are: (1) To determine the functional relationship between consumption and income for different farm sizes; (2) To describe the investment patterns of farms at different income levels; (3) To measure the potential for rural savings on farms. Interviews with 383 farmers in ten municipios of the Ribeirao Preto region, State of Sao Paulo, completed in July 1970, supply the basic data for this study. This research note reports the results of one M.S. thesis just completed at ESALQ (School of Agriculture of University of Sao Paulo) which analyzed the data from 130 farms in the three municipios of Guaira, Jardinopolis and Salles de Oliveira, all specialized in annual crop production. Additional analysis will be completed utilizing all ten municipios plus Itapetininga -- a municipio with many small farmers and more traditional than those of Ribeirao Preto.