Closing the Rural Credit Divide: Pathways to Increase PRONAF Access for Smallholders

The research identifies significant regional and gender disparities in access to PRONAF credit in Brazil, finding that technical assistance (ATER) and cooperative membership are critical determinants of access. While the 2025/26 Agricultural Plan allocated R$ 78.2 billion to PRONAF, a previous study indicated that approximately 85% of smallholders lack credit access. Simulations show that expanding ATER would most effectively increase access in the North and Northeast, while strengthening cooperatives would be most impactful in the Southeast and Midwest. The report warns that declining federal investments in ATER—dropping to approximately R$ 26.48 million by October 2025—compromise the program's ability to build climate resilience among vulnerable smallholders.

• There are stark regional disparities in PRONAF access, with the South region having significantly higher access rates than the North and Northeast. On average, municipal access in the South is roughly five times higher than in the North, with approximately 21% of smallholders in the South accessing the program compared to 5% in the Northeast and 4% in the North.
• Access to technical assistance and rural extension (ATER) and membership in farmer cooperatives are key determinants of PRONAF access. These factors help bridge information gaps and facilitate the navigation of complex documentation requirements, such as the National Registry of Family Farming (CAF).
• Counterfactual simulations indicate that the most effective pathway to increase PRONAF access in the North and Northeast is the expansion of ATER. In the Northeast, matching the South's ATER levels would increase access from 5.2% to 8.5%, a 63.5% gain. Conversely, in the Southeast and Midwest, strengthening cooperative membership is the more relevant factor for expanding access.
• Gender inequalities persist in rural credit access; women manage 20% of smallholder properties but only about 13% of PRONAF loans are directed to properties managed by women. Women-led establishments access PRONAF 16 percentage points less frequently than those run by men.
• Federal funding for ATER has shown a downward trend, which limits the potential of PRONAF to support climate resilience. In the 2025/26 Agricultural Plan, only R$ 240 million was allocated to ATER, and actual expenditures dropped to approximately R$ 26.48 million by October 2025.
• The 2025/26 Agricultural Plan allocated R$ 78.2 billion to PRONAF, including over R$ 8.26 billion in subsidies. However, a previous CPI/PUC-RIO study found that around 85% of smallholders still do not have access to credit.

APA

Climate Policy Initiative (2026). Closing the Rural Credit Divide: Pathways to Increase PRONAF Access for Smallholders. https://www.climatepolicyinitiative.org/publication/closing-the-rural-credit-divide-pathways-to-increase-pronaf-access-for-smallholders/

Chicago

Climate Policy Initiative. Closing the Rural Credit Divide: Pathways to Increase PRONAF Access for Smallholders. 2026. https://www.climatepolicyinitiative.org/publication/closing-the-rural-credit-divide-pathways-to-increase-pronaf-access-for-smallholders/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Closing the Rural Credit Divide: Pathways to Increase PRONAF Access for Smallholders |date=8 April 2026 |url=https://www.climatepolicyinitiative.org/publication/closing-the-rural-credit-divide-pathways-to-increase-pronaf-access-for-smallholders/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2026closing, author = {{Climate Policy Initiative}}, title = {{Closing the Rural Credit Divide: Pathways to Increase PRONAF Access for Smallholders}}, institution = {Climate Policy Initiative}, year = {2026}, month = apr, url = {https://www.climatepolicyinitiative.org/publication/closing-the-rural-credit-divide-pathways-to-increase-pronaf-access-for-smallholders/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }