World Bank supports Brazilian family farmers with $1.6 billion initiative

World Bank supports Brazilian family farmers with $1.6 billion initiative
Banking & Financial Services
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Ajay Banga 14th President of the World Bank Group | Official Website

The World Bank Board of Directors has approved a significant initiative, the Transforming Brazil’s Agrifood System program. This comprehensive plan aims to support family farmers in Brazil by enhancing agrifood productivity and food security, expanding market access, improving sustainable management of natural resources, and building climate resilience. The program is expected to benefit 421,000 family farmers and nearly 1.2 million rural residents.

With a budget of $1.602 billion, the program includes up to $1.289 billion from the International Bank for Reconstruction and Development (IBRD) and up to $313.20 million from counterpart financing. It will span 12 states over a decade, involving the Ministry of Agrarian Development and Family Farming (MDA) as well as the Ministry of Agriculture and Livestock (MAPA).

Family farmers represent 77 percent of Brazil's rural properties and are key producers of essential food items such as cassava, beans, rice, wheat, milk, and poultry. Supporting these farmers is vital for maintaining Brazil's food security and promoting sustainable economic development in rural areas.

The program draws on expertise from the World Bank Group and its partners to advise governments on improving agricultural public goods and services delivery. Governments can select activities that align with their agrifood system goals while contributing to national efforts in market access improvement, agriculture productivity enhancement, food security strengthening, natural resource management sustainability, and climate resilience building.

The first phase will launch in Bahia with a project led by the state government aimed at empowering family farmers through technical assistance for farming, business development services, and matching grants for agribusiness growth. Additionally, it will enhance access to safe drinking water in rural areas.

"This partnership is very important," said Paulo Teixeira, Minister of Agrarian Development and Family Farming. "We want abundant and high-quality food on the tables of all Brazilians."

Johannes Zutt, World Bank Country Director for Brazil stated: “Starting in Bahia, the program is paving the way for a more prosperous future for family farmers across several states in Brazil.”