BDMG Regenerative Agriculture Fund Instrument Design Report

The BDMG Regenerative Agriculture Fund is a blended finance instrument designed to overcome barriers to the adoption of regenerative agriculture (RA) in Minas Gerais, Brazil. It employs a tri-partite structure consisting of a credit guarantee fund to reduce collateral requirements, a technical assistance fund to bridge knowledge gaps, and a production support fund to buffer temporary income losses during the transition. The instrument specifically targets coffee, cattle, soybean, and corn producers, with a gender-equity focus providing higher guarantee coverage for women. The fund is currently moving from a design phase, supported by the FiCS Innovation Lab and Climate Policy Initiative, into a pilot implementation phase targeting an annual credit portfolio of BRL 10 million.

• The RA Fund addresses three primary barriers to the adoption of regenerative agriculture: limited access to affordable credit, knowledge gaps in implementation, and the risk of short-term income volatility during the transition period.
• To promote gender equity, the fund's credit guarantee mechanism provides higher coverage for women-managed properties (100%) compared to men (80%).
• Market research involving over 100 coffee producers in Minas Gerais revealed that while there is interest in regenerative practices, farmers face significant obstacles including high collateral requirements and a lack of price premiums for regenerative products.
• The pilot phase is calibrated for an annual credit portfolio of BRL 10 million, averaging 20 operations with a ticket size of BRL 500,000, with a conservative modeled default rate of 10%.
• The fund's climate impact goals for the pilot phase include sequestering 700 tons of CO2 in soil per year, with a long-term goal of implementing RA on more than 40,000 hectares across pilot and post-pilot phases.
• The instrument utilizes a specific Measurement, Reporting, and Verification (MRV) framework that uses MapBiomas soil and land-use data and the Rural Environmental Registry to establish baseline Soil Organic Carbon (SOC) stocks.
• Post-pilot scaling aims to increase annual credit deployment to BRL 50 million and evolve the fund into a layered-capital blended finance platform to attract private investment.

APA

Esquinca, K. D. G., & Peres, T. (n.d.). BDMG Regenerative Agriculture Fund Instrument Design Report. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2009/02/BDMG-Regenerative-Agriculture-Fund.pdf

Chicago

Esquinca, Karla D. Gonzalez, and Taarika Peres. BDMG Regenerative Agriculture Fund Instrument Design Report. Climate Policy Initiative, n.d. https://www.climatepolicyinitiative.org/wp-content/uploads/2009/02/BDMG-Regenerative-Agriculture-Fund.pdf.

Wikipedia

{{cite report |last1=Esquinca |first1=Karla D. Gonzalez |last2=Peres |first2=Taarika |title=BDMG Regenerative Agriculture Fund Instrument Design Report |publisher=Climate Policy Initiative |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2009/02/BDMG-Regenerative-Agriculture-Fund.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{esquincandbdmg, author = {Esquinca, Karla D. Gonzalez and Peres, Taarika}, title = {{BDMG Regenerative Agriculture Fund Instrument Design Report}}, institution = {Climate Policy Initiative}, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2009/02/BDMG-Regenerative-Agriculture-Fund.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }