Family Farming in Brazil: Inequalities in Credit Access

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 It argues that the current eligibility criteria, particularly the outdated 'fiscal module' system, create distortions that exclude the most vulnerable producers.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

• Credit access for family farmers in Brazil is limited and highly unequal, with only 15% of family farmers accessing credit. Access is skewed toward larger properties: 20% of producers with 10 to 100 hectares obtain 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 in the North (R$ 83).
• PRONAF funding is concentrated in specific crops, primarily grains and cattle. Corn, wheat, and soy receive the most financing, with PRONAF credit exceeding 40% of their sales value. Conversely, PRONAF accounts for less than 10% of the sales value for crops like manioc, banana, sugarcane, cocoa, pineapple, orange, and açaí.
• The 'fiscal module' system used to determine PRONAF eligibility is outdated, having remained largely unchanged since the 1980s. Because these modules do not reflect current technological advances or productive realities, they create distortions where producers with the same amount of land may be 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 significantly lower financing levels for family farming compared to corporate farming.
• To align agricultural policy with climate goals, the authors suggest incorporating sustainability criteria into credit rules, including restrictions for producers with embargoes or those who deforest, and strengthening PRONAF lines linked to the ABC+ Plan, such as PRONAF Agroecology and PRONAF Bioeconomy.

APA

Souza, P., & de Albuquerque, A. (2023). Family Farming in Brazil: Inequalities in Credit Access. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Family-Farming-in-Brazil.pdf

Chicago

Souza, Priscila, and Amanda de Albuquerque. Family Farming in Brazil: Inequalities in Credit Access. Climate Policy Initiative, 2023. https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Family-Farming-in-Brazil.pdf.

Wikipedia

{{cite report |last1=Souza |first1=Priscila |last2=de Albuquerque |first2=Amanda |title=Family Farming in Brazil: Inequalities in Credit Access |publisher=Climate Policy Initiative |date=November 2023 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Family-Farming-in-Brazil.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{souza2023family, author = {Souza, Priscila and de Albuquerque, Amanda}, title = {{Family Farming in Brazil: Inequalities in Credit Access}}, institution = {Climate Policy Initiative}, year = {2023}, month = nov, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Family-Farming-in-Brazil.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }