7 Peculiarities of Rural Credit in the Cerrado

The Cerrado biome accounts for approximately one third of Brazil's rural credit and agricultural production, with a high concentration of financial flows toward large-scale crop production, particularly soy. While the region has attracted more private funding sources like Agricultural Credit Notes (LCA) than other Brazilian biomes, the credit market remains dominated by public banks, specifically Banco do Brasil. There is a significant scarcity of credit for small and medium producers, as programs like PRONAF represent only 4% of the rural credit volume in the biome. The report argues that improving credit access for smaller producers is essential for increasing productivity and reducing deforestation pressures.

• Rural credit in the Cerrado is highly concentrated and proportional to the biome's agricultural output, with the Cerrado accounting for roughly one third of both Brazil's rural credit and agricultural production. Average contract values in the Cerrado were R$ 224,000 in 2019/20, which is 181% higher than the average for other biomes.
• Crop production, dominated by soy, receives the bulk of financing. In the 2019/20 agricultural year, 68% of total contract amounts in the Cerrado went to crop production, with soy alone accounting for 38% of the R$ 50 billion loaned for crops.

APA

Souza, P., Intropidi, B., de Campos, G., Vogt, P., & Assunção, J. (2021). 7 Peculiarities of Rural Credit in the Cerrado. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2021/08/7-Peculiarities-of-Rural-Credit-in-the-Cerrado.pdf

Chicago

Souza, Priscila, Barbara Intropidi, Gabriel de Campos, Pedro Vogt, and Juliano Assunção. 7 Peculiarities of Rural Credit in the Cerrado. Climate Policy Initiative, 2021. https://www.climatepolicyinitiative.org/wp-content/uploads/2021/08/7-Peculiarities-of-Rural-Credit-in-the-Cerrado.pdf.

Wikipedia

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BibTeX

@techreport{souza2021peculiarities, author = {Souza, Priscila and Intropidi, Barbara and de Campos, Gabriel and Vogt, Pedro and Assunção, Juliano}, title = {{7 Peculiarities of Rural Credit in the Cerrado}}, institution = {Climate Policy Initiative}, year = {2021}, month = aug, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2021/08/7-Peculiarities-of-Rural-Credit-in-the-Cerrado.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }