Introduction

Smallholder farming makes up 77% of rural properties in Brazil and accounts for 23% of agricultural production. The National Programme for Strengthening Family Farming (PRONAF) provides subsidised rural credit to support smallholders. Despite a massive allocation of R$ 78.2 billion in the 2025/26 Agricultural Plan, around 85% of smallholders lack access to credit. Researchers from CPI/PUC-RIO analysed barriers to credit and identified that technical assistance and rural extension (ATER), along with co-operative membership, are key to increasing access.

What Is PRONAF?

PRONAF targets smallholder family farming, defined by specific property size and income thresholds. Funding disbursed to PRONAF has grown over the past six years, accounting for 17% of the Agricultural Plan by 2024/25. However, securing PRONAF requires extensive documentation, including the National Registry of Family Farming (CAF), rural environmental registries, and detailed soil and property analyses. This extensive paperwork often presents a significant barrier for small-scale farmers with limited financial histories.

Profile of smallholders who obtain PRONAF

Access to PRONAF is highly uneven across Brazil. Data from the 2017 Agricultural Census indicates that average municipal access to PRONAF is approximately 21% in the South, compared to 5% in the Northeast and less than 4% in the North. The data also reveals a gender disparity, as only 13% of loans went to female-managed properties, despite women running 20% of smallholder farms. A sub-programme, PRONAF Mulher, was created to address this gap, seeing a 351% increase in disbursements between 2020/21 and 2024/25, yet women-led establishments still access PRONAF significantly less frequently than those run by men.

Determinants of access to PRONAF

There is a strong association between PRONAF access, availability of technical assistance, and ties to co-operatives. A simulation exercise demonstrated that expanding technical assistance would be the most effective strategy to increase access in the North and Northeast. For instance, if technical assistance in the North matched Southern levels, PRONAF access would rise by 53.8%. In the Southeast and Midwest, increasing co-operative membership would be the most impactful factor, potentially raising access by 22.5% and 28.9% respectively.

Implications for public policy

Expanding rural credit depends on complementary policies, particularly investments in ATER and the strengthening of co-operatives. Despite its importance, federal expenditure on technical assistance has been declining in real terms, dropping to an estimated R$ 26.48 million by late 2025. Access to credit without accompanying technical support has limited impact on sustainable productivity and climate resilience. Expanding PRONAF through increased subsidies should occur alongside a well-coordinated portfolio of complementary public policies to reduce regional inequalities and ensure sustainable productivity gains.