Economic results of rural family properties in western of the State of Santa Catarina

Abstract

The purpose of this study was to identify and assess the factors that affect the economic result of rural family properties, considering different levels of Rate of Return on Capital (RRC). We used data obtained from 29 properties of Western of the State of Santa Catarina, by means of rapid rural appraisal, during the crop years of 2010, 2011 and 2012, by using principal component analysis and redundancy analysis. Properties were classified into three groups according to RRC, using the net yield, and gross margin as response variables. A set of variables reflecting the availability of factors of production, characteristics of activities developed, and aspect related to properties management were used as explanatory variables. According to results, the intensification of productive activities provides greater rate of return on capital. Therefore, it highlighted here, the importance of management practices, and it provides elements which support the development of strategies for improving economic results, and sustainability of rural family properties.