Family Farming in Brazil: Inequalities in Credit Access

This policy brief by the Climate Policy Initiative (CPI/PUC-Rio) analyzes inequalities in access to rural credit for family farmers in Brazil, specifically focusing on the National Plan for Family Farming (PRONAF). The report finds that credit is highly concentrated among larger family properties, producers in the South region, and those producing grains, while the smallest producers and those in the North and Northeast face significant financial constraints.

• Access to credit among family farmers in Brazil is very limited, with only 15% of these producers accessing credit. This access is skewed toward larger family properties; 20% of producers with properties between 10 and 100 hectares receive credit, compared to only 10% of those with properties up to four hectares.
• There are stark regional disparities in credit access and funding. In the South, 29% of family farmers access credit, whereas only 9% do so in the North. Furthermore, the average amount per hectare for PRONAF contracts in the South (R$ 1,451) is eighteen times higher than the average in the North (R$ 83).
• PRONAF funding is heavily concentrated in specific crops, particularly grains. Corn, wheat, and soy receive the most financing, with PRONAF credit covering over 40% of their sales value. Conversely, crops typical of family farming—such as açaí, cocoa, banana, and manioc—receive less than 10% of their sales value from PRONAF.
• While PRONAF represents a high volume of contracts, it accounts for a small portion of total rural credit resources. In 2022, PRONAF contracts made up 73% of all rural credit contracts but only 14% of the total volume of resources, indicating significantly lower financing levels for family farming compared to corporate farming.
• The 'fiscal module' used to determine PRONAF eligibility is outdated and creates distortions. Established in the 1980s, these modules do not reflect current technological advances or productivity changes, leading to situations where producers with the same amount of land are categorized differently based on their municipality.
• The 2023/2024 Brazilian Agricultural Plan allocates R$ 13.6 billion to credit subsidies, with R$ 8.5 billion (62% of all subsidies) designated specifically for PRONAF. The total volume of credit allocated to PRONAF for this period is R$ 71.6 billion, representing 16% of the total rural credit volume.

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} }