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Credit increased by 10 times since 2002 and with interest rates that are less than inflation rates

With Lula and Dilma, the National Program for Strengthening Family Farming (Pronaf) was expanded and made simplified. Credit jumped from R$ 2.2 billion (2002-2003) to R$ 24.1 billion in the 2014-2015 season. Besides being small in size, Pronaf previously had been limited to a small number of beneficiaries, mostly located in the South. Only about 20% of farmers had access. Today, the program is available in 5,454 municipalities, with expansion of the groups benefited (women, youths, small-scale fishing, extractivists), newly financed activities (agroforestry, agro-industrial, cooperatives) and interest rates below inflation levels. Since 2002, more than 1 million families have acquired rural credit through the program. Under Lula and Dilma, Pronaf in fact fulfills the mission actually imprinted in its name: strengthening of family farming.

• Learn  more about Pronaf [1]

Pronaf has financed the purchase of thousands of tractors, benefiting farmers like Hélio Justino Neves and his son Adelmo Photo: Tamires Kopp/MDA

In 2008, in response to the world economic crisis, the Lula Government introduced a line of credit earmarked specifically to finance the infrastructure and increase the productivity of family farming.

The Dilma Government continued and extended this policy and in 5 years, 400,000 families received a total of R$ 15.5 billion in credit for the purchase of tractors, transport vehicle, harvesters, refrigerated units for milk and investments in projects for the improvement and recovery of the land, genetic improvements and irrigation. Around 2300 jobs (34% of the labor force in the tractor industry were employed thanks to the “More Foods” program that also encouraged manufacturers to increase their domestic content in order to qualify for the program, generating even more jobs in the sector.


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Financiamento dá segurança para aumentar e diversificar produção

Crédito a juros mais baixos para as mulheres

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Protection Network
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Besides a record supply of credit, the Lula and Dilma governments implemented and improved several actions to meet an historical demand of family farmers: income guarantees in the event of a fall in prices or a crop failures due to adverse weather.

• Crop Guarantees: Security for poor farmers living in localities affected by adverse weather conditions, especially in semi-arid regions. In case of loss of at least 50% of farm production, the families receive a R$ 850 benefit. Some 1.35 million farmers are beneficiaries.

• Agricultural Insurance: Protection mechanism for financing farmers who contract agricultural funding through Pronaf.

• Guarantee of 80% of expected gross revenues;

• Net income coverage limit up to R$ 20,000.

• Family Farming Price Guarantee Program: The PGPAF ensures discounts in Pronaf financing contracts in the event market prices drop. The discount is automatic and represents the difference between the market price and the price of the price guarantee (cost of production).

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Semi-arid Harvest Plan: government protection and support for those who need it most
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In 2013, because of one of the biggest droughts in history, the Dilma administration introduced a series of structural measures to encourage family farming in the semi-arid region, making a total of R$ 4 billion in benefits available. The first Semi-arid Harvest Plan suspended debt collection of the region’s farmers until the end of 2014. Additionally, 870,000 producers received regular and extra Crop Guarantee payments, 215,000 farmers received 930,000 tons of corn for animal feed and more than 1 million received benefits from the Drought Payment program. A total of 937,000 cisterns were built and 60,000 water storage facilities implemented (with 16,000 more scheduled by the end of 2014).

Furthermore, a largest operation in history was mounted to supply water by truck, coordinated by the Army, mobilizing more than 6,000 water trucks. Some 207 simplified water supply systems and 95 wells in the states of Alagoas, Bahia, Minas Gerais, Pernambuco and Sergipe were set up.

Thanks to these and other measures, in contrast to past history, there was no hunger epidemic, families were not forced to migrate to big cities, nor were supermarkets looted. In the second Semi-Arid Crop Plan (2014-2015), the volume of credit rose to R$ 4.6 billion.

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• Dilma: "The plan is an historic step to face the challenge of dealing with drought" (Read and listen to the “Coffee with the President” program about the Semiarid Crop Plan) [19]

• More about the Semi-arid Crop Plan [20]

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Source URL: http://brasildamudanca.com.br/en/agricultura-familiar-e-reforma-agraria/financing-and-protection

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