Federal government makes R$1 billion available in rural microcredit for the North and Central-West regions

The federal government announced the provision of R$1 billion in microcredit for rural producers in the North and Central-West regions of the country. The initiative is part of the National Program for Oriented Productive Microcredit (PNMPO) and the National Program for Strengthening Family Farming (PRONAF), with R$500 million earmarked for each region.

Access to credit will enable the social inclusion of small producers and provide more work and income for those who undertake business in the sector. The Minister of Integration and Regional Development, Waldez Góes, reinforced the importance of civil society partners, such as Sebrae, for the project's success.

"It's crucial for us to have a clear understanding of how financial instruments policy is being handled by President Lula's administration. This involves not only those present at this table, but also many other stakeholders, such as the Ministry of Finance, the Ministry of Planning, and other departments," Góes noted.

Sebrae President Décio Lima highlighted the potential for social inclusion that the initiative will generate in the North and Central-West regions. "I want to congratulate this synergy between the ministries and the leadership of the ministers, who only with a heart of passion and humanism can produce these results for the Brazilian people. Sebrae believes in the welfare state, with public policies that foster the country's development," he stated.

Targeted microcredit

The Ministry of Integration and Regional Development (MIDR) also issued a call for applications for accreditation for transfers from Constitutional Funds to microcredit. The call seeks to accredit financial institutions to provide credit to family farmers in regions with greater socioeconomic vulnerability.

According to Eduardo Tavares, National Secretary of Funds and Financial Instruments at MIDR, the credit line carries only 0.5% annual interest, in addition to other benefits. "If farmers in the North pay on time, they receive a 40% discount, and in the Central-West, a 25% discount. So, it's an interest rate that truly encourages farmers to join. And then, of course, rates will normalize, but always at a value well below the Selic rate," he explains.

Sebrae in the field

Sebrae prioritizes small producers and family farmers. Family farms account for 23% of Brazil's gross agricultural production and account for 67% of rural jobs, employing approximately 10.1 million workers.

To improve agricultural production in the country, Sebrae has two initiatives to train and strengthen small rural producers: ALI Rural and Juntos pelo Agro. ALI Rural is aimed at agribusinesses seeking innovation and sustainable development. Over a 12-month period, a Local Innovation Agent conducts a diagnosis, presents solutions, and measures the producer's results. In 2024, the 5,111 small rural businesses that participated in the program saw a 24.2% increase in revenue.

Meanwhile, Juntos pelo Agro, a partnership with the CNA/Senar System, provides rural producers with consulting and technical assistance. The initiative promotes rural development by improving the business environment. Sebrae's role is to train producers in management, market opportunities, innovation, and technology.