Development Indicators and Soybean Production in Brazil

Abstract

Due to its agricultural potential, land extensions, and favorable climate, Brazil is one of the largest producers and exporters of various agricultural products. A significant part of this production is placed in Mato Grosso, the primary national producer of several agricultural commodities. The soybean complex alone produced more than 33 million tons of soybean for the 2019/2020 harvest, representing 27% of national production. The economic potential that the soybean commodity represents is linked to the increase in demand for inputs, planted area, production, and productivity. Given these factors, the present study aims to analyze how the largest municipalities of soybean production behave, and the degree of interaction and positive associations between the economic potential promoted by soybean production and the economic/social development and environmental impacts in the Mato Grosso State, Brazil. The methodology was to categorize the thirty largest soybean producing municipalities, using the factor analysis method for selected indicators. The interpretation is made through the adoption of the Driver-Pressure-State-Impact-Response (DPSIR) framework. The results indicated that the groups formed are not homogeneous in terms of socio-economic and environmental development. The three factors that formed, were interpreted using the DPSIR are characterized by the significant influence of the population, reflect on its development, how economic activities are other and not just agriculture. The second also belongs to the driver in the DPSRI framework group. It is associated with the soybean production indicator, implying larger planting areas, generating jobs focused on agricultural activities. The interpretation is made through the adoption of the Driver-Pressure-State-Impact-Response (DPSIR) framework. The results indicated that the groups formed are not homogeneous in terms of socio-economic and environmental development. The significant influence of the population characterizes the three found factors. The first reflects on the region’s development and how other economic activities (not just agriculture) are carried on. The second also belongs to the driver in the DPSRI framework group, and it is associated with the soybean production indicator, generating jobs focused on agricultural activities. The third group, formed by municipalities in the Amazon region, with environmental factors associated with large geographical areas, extensive native forests, and more significant carbon sequestration, considers the DPSRI framework’s impacts. Showing that there are behavior patterns and taking this into account is the optimal way to use the predictors appropriately. Municipalities are expected to be more reactive to some changes than to others to achieve a good level of development.