Understanding the True Cost of a Decent Life: A Benchmark Study of Rural Families in Central-Eastern Rio Grande do Sul
In April 2024, we, a team of four Brazilian researchers - two sociologists linked to the Anker Research Institute, a social scientist and an economist - set off for the interior of Rio Grande do Sul with a clear purpose: to understand, in an in-depth and sensitive way, the cost of a decent life for rural families in the central-eastern region of the state.
This work builds on findings from the Living Income and Living Wage Benchmark Study for Rural Central-Eastern Rio Grande do Sul, conducted using the Anker Methodology®.
Photograph taken by the ARI team in Brazil
Our journey began in Santa Cruz do Sul, and from there, we went to nine other cities that make up this region: Arroio do Tigre, Boqueirão do Leão, Candelária, Gramado Xavier, Herveiras, Ibarama, Rio Pardo, Sinimbu and Venâncio Aires. These municipalities, which vary in population size, proportion of rural population and income indicators, gave us a complex and realistic picture of living conditions in rural Rio Grande do Sul.
We began our work by interviewing local stakeholders—rural workers' and producers' unions, employers' federations, EMATER technicians, and organizations such as AFUBRA, FARSUL, and SINDITABACO. These meetings were essential for us to understand the region's productive dynamics, consumption patterns, and the challenges faced by those who make a living from working the land.
At the same time, we conducted home visits to 49 rural houses, where we took a close look at the condition of the dwellings - the materials used in construction, access to water and energy, ventilation, the presence of bathrooms and the number of rooms. During these visits, we talked to the families about their eating habits, where they shopped, their expenses and priorities. This information helped us define the minimum standard of decent housing and the main items that make up the local diet - a fundamental stage for the subsequent collection of prices.
ARI Brazilian researchers talking to local stakeholders
We then visited 19 supermarkets and wholesale markets indicated by the families themselves, looking for the foods most consumed in the region: rice, beans, flour, cassava, eggs, chicken, milk, vegetables, fruit such as bananas and oranges, and items such as oil and sugar. Based on the data collected, we drew up a model diet that was nutritious, accessible, and culturally appropriate, according to the criteria of the Anker Methodology®.
Based on this, we estimated the amount needed to guarantee a decent life for a reference family of four people (two adults and two children). The end result was a living income of R$ 5,238 per month (USD 1,021). This figure takes into account three main components. The first is food, with an estimated cost of R$ 1,325 (USD 258) per month, already discounting the positive impact of free school meals provided by the public school system. The second is housing, the cost of which, based on renting a suitable house of 60 m², with sanitation, energy and good structural conditions, was estimated at R$ 696 (USD 136). The third component covers all non-food and non-housing expenses (NFNH) - such as transportation, clothing, health, education, hygiene, culture, communications and a reserve for emergencies - and totaled R$ 3,168 (USD 617).
To achieve this living income, a rural full-time worker needs a net living wage (take-home pay) of R$ 3,052 per month (USD 595), or a living wage of R$ 3,391 per month (USD 661), if we include social security contribution and income taxes. This living wage considers, on average, 1.72 full-time equivalent workers in the typical working family. This figure highlights the significant gap between the minimum wage in force in the country (R$ 1,687 per month, including annual allowances) and the real cost of a basic but decent life, even in one of Brazil's most productive agricultural regions.
“In times of climate crisis and growing inequality, guaranteeing the right to a dignified life - with healthy food, adequate housing and access to essential goods and services - is not just a technical issue but an ethical imperative”
Shortly after we finished our fieldwork, we received, with immense sadness, the news about the floods that devastated Rio Grande do Sul. In May 2024, more than 450 municipalities were hit by unprecedented floods. The rains left a trail of destruction, houses were swept away, entire crops were lost, and thousands of families were left homeless. Many of the communities we visited were severely affected. As the Anker Research Institute pointed out in an official statement, this climate tragedy reveals the urgency of strengthening public policies aimed at social protection and adaptation to climate change - especially for the most vulnerable rural populations.
Our mission has, therefore, become even more meaningful. In times of climate crisis and growing inequality, guaranteeing the right to a dignified life - with healthy food, adequate housing and access to essential goods and services - is not just a technical issue but an ethical imperative. We returned home with data and spreadsheets, yes, but above all, with the conviction that our work contributes to giving visibility and a voice to those who sustain livelihoods in Rio Grande do Su with their own efforts and who urgently deserve dignity, protection and justice.
For more information about our research in Brazil, contact ARI’s Senior researcher: Ian Prates, iprates@sai.org.br and Senior Data Analyst Carmelita Veneroso mveneroso@ankerinstitute.org
For general inquiries about the Anker Research Institute’s work, contact: inquiries@ankerinstitute.org
The views and opinions expressed here are those of the authors and do not necessarily reflect the position of the Anker Research Institute.