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Crescimento com distribuição

Financing and Protection


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Financiamento dá segurança para aumentar e diversificar produção

Crédito a juros mais baixos para as mulheres

Protection Network

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).

Semi-arid Harvest Plan: government protection and support for those who need it most

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.