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Guarantee Fund for Family Farming – Brazil

Guarantee Fund for Family Farming Sebrae and Ministry of Agrarian Development Partner Up

Guarantee Fund for Family Farming: Sebrae and Ministry of Agrarian Development Partner Up

Boosting Family Farming

In a significant move to support rural development, Sebrae and the Ministry of Agrarian Development are working together to create a guarantee fund for family farming. This partnership aims to provide credit access and technical assistance to small-scale producers, ultimately increasing food production in Brazil.

The Importance of Family Farming

Family farming properties account for 23% of the gross value of agricultural production in Brazil and cover 67% of rural occupations, employing around 10.1 million workers. Sebrae has an intense presence in the field, offering technical assistance, market access, and now, credit access through its guarantee fund.

Enhancing Credit Access

Friday’s meeting with Agrarian Development Minister Paulo Teixeira focused on family farming. Décio Lima, Sebrae’s president, stated, “We must allocate Clique Brasil funds to small producers. “Additionally, he said, “The Agriculture Ministry will partner with credit cooperatives and BNDES.” This partnership enables family farming to receive Sebrae’s endorsement. Sebrae capitalized R$2 billion net worth for new operations. Consequently, it provides R$30 billion credit over three years through its guarantee fund.

Triad of Success: Technical Assistance, Credit Access, and Market Access

Minister Paulo Teixeira emphasized the importance of working on three fronts: technical assistance, credit access, and market access. “We need to work on the tripod of technical assistance, access to credit and the market,” said Teixeira. With this comprehensive approach, family farming will be able to expand food production in Brazil, thereby benefiting both producers and consumers. Moreover, this will not only increase agricultural output but will also strengthen rural communities. Furthermore, by providing access to credit and technical assistance, small-scale farmers can improve their productivity and income levels. Consequently, this will lead to a more sustainable and resilient food system in the country. In addition, the increased availability of locally-grown produce will offer consumers access to fresh and nutritious food options. Overall, this initiative has the potential to create a virtuous cycle of economic growth and social development in rural areas.

Guarantee Fund: A Game-Changer for Rural Development

The guarantee fund will play a crucial role in rural development, enabling small-scale producers to access credit and expand their production. This, in turn, will increase food production, improve rural livelihoods, and contribute to Brazil’s economic growth. As a result, the partnership between Sebrae and the Ministry of Agrarian Development is a significant step towards a more sustainable and equitable agricultural sector.

Looking Ahead

The guarantee fund for family farming pioneers a transformative initiative. It offers credit access and technical aid to small-scale producers. Consequently, Sebrae and the Agrarian Development Ministry pave a prosperous path for rural communities.Moreover, as this partnership expands, close monitoring becomes crucial. Evaluating progress and impact ensures all stakeholders reap the guarantee fund’s benefits. Undoubtedly, this groundbreaking program holds immense potential for Brazil’s agricultural sector.

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