O PAPEL DAS COOPERATIVAS NO CRÉDITO RURAL

This policy brief analyzes the role of credit cooperatives in Brazil's rural credit system, highlighting their growth during economic instability and their function as a mechanism for financial inclusion for small and medium-sized rural producers.

• Credit cooperatives experienced significant growth between the 2013/2014 and 2018/2019 agricultural years, increasing their market share from 11% to 17.5%. During this period, real credit from cooperatives grew by 51.3%, reaching R$ 33 billion, which helped mitigate the effects of an economic recession that saw total rural credit financing fall by 14%.
• Cooperatives serve as a critical channel for financial inclusion for smaller producers due to lower average contract values compared to private banks. In the 2018/19 agricultural year, cooperatives had an average contract value of R$ 88.2 thousand, significantly lower than the R$ 454.9 thousand average at private banks. This is reflected in the use of specific credit lines: 21% of cooperative resources were allocated via Pronaf (Family Agriculture Strengthening Program) and 18% via Pronamp (National Support Program for Medium Rural Producers).
• Cooperatives reduce transaction costs and information asymmetry because of their proximity to producers and the fact that borrowers are often members. This relationship allows for better monitoring of production losses and defaults, as neighbors are often members of the same cooperative.
• Commercial banks, particularly private ones, use credit cooperatives as a channel to meet regulatory requirements for directing deposits and rural savings toward rural credit at controlled rates.
• There is a strong regional disparity in the presence of credit cooperatives in Brazil. They are most prevalent in the South, Midwest, and Southeast regions, with Rio Grande do Sul, Paraná, and Espírito Santo seeing 25% to 35% of their total credit distributed via cooperatives. Conversely, in all Northeast states, cooperative credit represents less than 5% of the total volume.
• Cooperatives focus heavily on 'custeio' (operational costs), which accounted for 72% of their loans in 2018/19, a higher proportion than public banks (59%) and private banks (43%). Within this category, the primary products financed were soy (33%), cattle (27%), and corn (12%).
• Credit cooperatives benefit from specific tax and regulatory advantages. They are exempt from Income Tax and the Social Contribution on Net Profit (CSLL) on cooperative acts. Additionally, they are not subject to compulsory deposits and have different prudential regimes (Complete vs. Simple) based on their operational complexity as defined by the Central Bank of Brazil.

APA

Assunção, J., Costa, D. R. D. M., & Souza, P. (2020). O PAPEL DAS COOPERATIVAS NO CRÉDITO RURAL. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2020/07/PB-O-Papel-das-Cooperativas-no-Credito-Rural.pdf

Chicago

Assunção, Juliano, Davi Rogério de Moura Costa, and Priscila Souza. O PAPEL DAS COOPERATIVAS NO CRÉDITO RURAL. Climate Policy Initiative, 2020. https://www.climatepolicyinitiative.org/wp-content/uploads/2020/07/PB-O-Papel-das-Cooperativas-no-Credito-Rural.pdf.

Wikipedia

{{cite report |last1=Assunção |first1=Juliano |last2=Costa |first2=Davi Rogério de Moura |last3=Souza |first3=Priscila |title=O PAPEL DAS COOPERATIVAS NO CRÉDITO RURAL |publisher=Climate Policy Initiative |date=July 2020 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2020/07/PB-O-Papel-das-Cooperativas-no-Credito-Rural.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{assuno2020papel, author = {Assunção, Juliano and Costa, Davi Rogério de Moura and Souza, Priscila}, title = {{O PAPEL DAS COOPERATIVAS NO CRÉDITO RURAL}}, institution = {Climate Policy Initiative}, year = {2020}, month = jul, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2020/07/PB-O-Papel-das-Cooperativas-no-Credito-Rural.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }