-In recent years the debate pertaining to the development of rural areas has been enriched by contributions that indicate the growing importance of non agricultural activities in rural areas. These contributions are significant to the Brazilian agricultural establishment and most importantly to what is known as family agriculture. The objective of this study is to contribute to the debate by analyzing available information pertinent to rural cottage industry, in other words rural activity that is not agricultural. This exploratory study has shown that activities pertaining to rural cottage industry are important in supplying the internal market when some products that are clearly present on the agricultural production units, specifically those relying on family production. It should also be noted that on the average, these activities create jobs and income for the families involved and provides significantly higher income than activities in traditional agriculture. The data show that stimulating rural cottage industry can contribute significantly in developing the Brazilian rural area.

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