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This paper evaluates the impact of land reforms on household agricultural investments, livelihood strategies, and income levels in Brazil. Given the persistence of rural poverty in Northeast Brazil and the existence of both land and credit market failures, land reforms remain important policy tools for alleviating poverty and increasing growth. This paper evaluates the impact of the recent National Program of Land Credit, a controversial market-assisted land reform program that provides access to land through private land markets. Household-level panel data covering similar beneficiary and control groups allows for identification using both propensity score weighting and difference-in-difference methodologies. The evidence indicates that the Land Credit successfully transitions households into agriculture, with land holdings and investments increasing as a result of the program. As with many earlier land reform programs in Latin America, the new wave of market-assisted land reforms does not increase access to private credit. While land reforms have the potential to drive redistribution, poverty reduction, and growth, these findings suggest that ensuring greater access to credit, irrigation, and higher return economic activities remains important. [ABSTRACT FROM AUTHOR]

Summary: The present paper considers a sometimes contentious process of land reform presently occurring in Brazil. This process, referred to in the paper as Direct Action Land Reform (DALR), involves organizations such as the Landless Rural Workers Movement (Movimento dos Trabalhadores Rurais Sem Terra, or MST) and more spontaneous actions of individuals desiring a piece of land for their own. Results of a survey covering 751 households engaged in such land reform actions in the Brazilian Amazon are presented, in order to describe participants and land reform processes. Evidently, social movement organizations provide for a modest degree of wealth accumulation, a welfare improvement that must be set against potential environmental costs. The paper concludes by calling attention to the challenge DALR may ultimately pose to the Brazilian state. [Copyright &y& Elsevier]

• Terra Legal had no overall impact on deforestation as of 2012. • Deforestation levels increased following Terra Legal in highly registered counties. • Spatial spillovers from Terra Legal were minimal in the short term. • Temporary crop cultivation decreased with greater registered area. • Investment loans increased in counties with more area registered by small and medium farms. This paper estimates the early impacts of Terra Legal , a large property rights reform, on deforestation and farming in the Brazilian Amazon. Twelve and a half million hectares, more than 2.5% of the Brazilian Amazon, have been registered under this program. The establishment of property rights may increase a farmer's incentive to invest in his land and expand his farm due to a lower risk of expropriation. On the other hand, the enforcement of conservation requirements may be easier when farmers have legal titles to their land. We use county level data from 2007 to 2012 on farm registrations, deforestation, crop choice and bovine management to test the impact of the Terra Legal land reform. While we find no overall impact of the program on deforestation during the period in our sample, we do show that there is substantial heterogeneity in impacts across counties. Counties with the largest area registered do have an increase in the level of area deforested, but they also have a decrease in the rate of deforestation. We investigate the extent to which changes in deforestation are related to the amount of registration that occurs among small, medium and large farms, and find limited support for less deforestation among counties with more area registered by small farms; more area registered by large farms is associated with a higher level of deforestation, but a decreased deforestation rate. Our results suggest that land tenure reform can create incentives to decelerate deforestation. Farm size has a strong impact on the farm management changes generated by improved property rights; coupling land tenure reforms with incentives to intensify production rather than expand could lead to reduced deforestation, particularly among small farms. [ABSTRACT FROM AUTHOR]