Family Farming in Brazil: Inequalities in Credit Access

The document reveals that only 15% of Brazilian family farmers access credit, with resources heavily concentrated in the South region, larger family properties, and grain production. It argues that the current eligibility criteria, particularly the outdated 'fiscal module' system, create distortions that exclude the most vulnerable producers. The brief recommends revising these criteria and integrating sustainability requirements to support a transition to low-carbon agriculture.

• Credit access among family farmers is limited and highly unequal, with only 15% of family farmers accessing credit.
• There is a strong correlation between farm size and credit access; producers with properties between 10 and 100 hectares have higher access rates (19-20%) compared to those with properties up to four hectares (10-11%).
• Significant regional disparities exist in credit access and funding volume, with the South region showing the highest access (29%) and the North the lowest (9%). The average amount per hectare for PRONAF contracts in the South (R$ 1,451) is eighteen times higher than in the North (R$ 83).
• Financing is concentrated in specific crops; corn, wheat, and soy receive the most funding, with PRONAF credit exceeding 40% of their sales value. Conversely, crops central to family farming like manioc, banana, and açaí receive less than 10% of their sales value in PRONAF financing.
• The 'fiscal module' system used to determine PRONAF eligibility is outdated, having remained largely unaltered since the 1980s, which leads to distortions where producers with identical land sizes are categorized differently based on their municipality.
• While PRONAF represents a high volume of contracts (73% of all rural credit contracts in 2022), it accounts for a disproportionately small share of the total credit volume (14%), indicating lower financing levels for family farming compared to corporate farming.

APA

Climate Policy Initiative (2023). Family Farming in Brazil: Inequalities in Credit Access. https://www.climatepolicyinitiative.org/publication/family-farming-in-brazil-inequalities-in-credit-access/

Chicago

Climate Policy Initiative. Family Farming in Brazil: Inequalities in Credit Access. 2023. https://www.climatepolicyinitiative.org/publication/family-farming-in-brazil-inequalities-in-credit-access/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Family Farming in Brazil: Inequalities in Credit Access |date=7 November 2023 |url=https://www.climatepolicyinitiative.org/publication/family-farming-in-brazil-inequalities-in-credit-access/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2023family, author = {{Climate Policy Initiative}}, title = {{Family Farming in Brazil: Inequalities in Credit Access}}, institution = {Climate Policy Initiative}, year = {2023}, month = nov, url = {https://www.climatepolicyinitiative.org/publication/family-farming-in-brazil-inequalities-in-credit-access/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }