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PUBLIC POLICIES FOR FAMILY FARMING
PUBLIC POLICIES FOR FAMILY FARMING
1995 – PRONAF
is createdDAP - PRONAF Eligibility
Declaration is created
Lack of Public Policies for Family Farmers Exclusion
1999 – MDA is created
DAP – PRONAF Eligibility Declaration is the document that identifies the family farmer.
DAP may be obtained from previously authorized institutions :• the official entities of Technical Aid and Rural Extension;• the Agriculture Federations and Confederations, through their
unions
Family Farming's Recognition by the Government
MDA (since 2003)
Family Farming's Law
Nº 11.326/2006
Definition of:
• Family Farming
• Rural Family Enterprise
Expansion of Public Policies
ATER
Insurance
Institucional Foods Markets
Credit
Development of a comprehensive set of laws, regulations, programs and actions focusing on family
farmers at all levels of government
Development of Brazilian Democracy / Social
Participation
Creation of specific policies for family farming
'Dignified Life in the Field'
Inclusion Public Policies
Government assuming the importance of Family farming in generating employment,
income and food production
• Fishermen
• Afrodescendent rural communities (Quilombolas)
• Traditional indigenous
• Women
• Land Reform Settlers
Family Farming's Recognition by the Government
Family Farming's Recognition by the Government
Law nº 11.326, July 24th, 2006
We can consider “family farmers” and “rural family entrepreneurs” those who
practice farm activities in rural areas, fullfiling the following requirements:
I - do not hold an area larger than four (4) tax modules;
II - predominantly use labor of their own families;
III - most of the family income comes from their own property;
IV - manage your property with your family.
Beneficiaries: foresters, gatherers, fishermen, quilombolas, indigenous and
family farmers settled in land reform.
Credit lines for financing individual and group projects;
Low interest rates – 0,5% a 4,5% per year;
Credit for current spending and investment, rural microcredit, credit for family farmers settled in land reform and special lines: More Food, Women, Young people, Familiar Agribusiness , others
Different funding sources: savings, deposits, constitutional funds, Workers Fund (FAT) and the Union budget;
Operated by public and private banks and credit cooperatives;
It has a portfolio of 1.4 million contracts, totaling 15 billion Reais;
Lowest rates of default among credit systems in the country.
NATIONAL PROGRAM FOR FAMILY FARMING STRENGTHENING - PRONAF
Source: MDASource: MDASource: MDASource: MDA
PRONAF ResourcesPRONAF ResourcesPRONAF ResourcesPRONAF Resources
02/0302/0302/0302/03
R$ 2,38R$ 2,38billionbillion
R$ 2,38R$ 2,38billionbillion
03/0403/0403/0403/04
R$ 4,49R$ 4,49billionbillion
R$ 4,49R$ 4,49billionbillion
04/0504/0504/0504/05
R$ 6,13R$ 6,13billionbillion
R$ 6,13R$ 6,13billionbillion
05/0605/0605/0605/06
R$ 7,61R$ 7,61billionbillion
R$ 7,61R$ 7,61billionbillion
06/0706/0706/0706/07
R$ 8,42R$ 8,42billionbillion
R$ 8,42R$ 8,42billionbillion
07/0807/0807/0807/08
R$ 9,07R$ 9,07billionbillion
R$ 9,07R$ 9,07billionbillion
08/0908/0908/0908/09
R$ 11,7R$ 11,7billionbillion
R$ 11,7R$ 11,7billionbillion
09/1009/1009/1009/10
R$ 15R$ 15billionbillionR$ 15R$ 15billionbillion
10/1110/1110/1110/11
R$ 16R$ 16billionbillionR$ 16R$ 16billionbillion
11/1211/1211/1211/12
R$ 16R$ 16billionbillionR$ 16R$ 16billionbillion
12/1312/1312/1312/13
R$ 18R$ 18billionbillionR$ 18R$ 18billionbillion
• Insurance for the family farmers who hire agricultural funding at PRONAF. The accession to this service is automatic.
• It covers losses due to weather events and non preventable pests.
• It’s based on the region’s agricultural zoning.
• Insured value: 100% of the financed value and 65% of the expected net income, which is limited to R$ 7.000,00 per farmer per year.
• Shared management with Banco Central and traded by the financial agents.
• It protects funding and ensures debt payments.
FAMILY FARMING INSURANCE- SEAF
•It assures mininum income for family farmers from the Semi-Arid region who lose more than 50% of their production in case of drought or flood.
•Beneficiaries: producers of rice, cotton, beans, cassava and corn, included in PRONAF, with a monthly income up to 1.5 minimum wage (rural retirement not included).
•Farmer’s accession before planting. Beneficiaries’ selecion is made by the Municipal Council For Sustainable Rural Development.
•It’s a federative Program: Federal Government(20%), States(6%) and municipalities (3%), and Family Farming(1%) on the Crop Guarantee Fund.
CROP GUARANTEE
• It’s na insurance for the family farmers who use PRONAF for current spending or investiment, in case of low prices in the market.
• It ensures a discount on the funding payment, which consists on the difference between the market price and the product’s guarantee price.
• It ensures the remuneration of the family farmer’s production costs.
• It’s traded by banks, MDA and CONAB.
FAMILY FARMING PROGRAM FOR PRICING GUARANTEE - PGPAF
• The main goal of technical aid and rural extension (ATER) is to improve the production systems and the access to resources, services and income, in a sustainable manner.
• There are 13 thousand ATER technicians all over Brasil. They are acting on the municipal offices, which are registered on SIBRATER.
• SIBRATER: Brazilian System of Technical Aid and Rural Extension. It’s managed by MDA All Official ATER Entities are registered in SIBRATER Total: 451 Federal Goverment-owned: 41 Non Federal Government-owned: 410
NATIONAL POLICY FOR TECHNICAL AID AND RURAL EXTENSION - PNATER
• The importance of the State in structuring fair systems of production, distribution and consumption of food
• Programs to encourage the trading of Family Farming
• They are part of the strategy of rural productive inclusion in the “BRAZIL WITHOUT MISERY PLAN” - PBSM
PAA and PNAE: Institutional Food Markets
The PAA is one of the actions of Fome Zero Program (Zero Hunger). The mains goals are:
• To ensure food access for the people who face nutritional and food insecurity;
• To promote social inclusion in the countryside by strengthening family farming – selling support;
• To constitute public stocks of food produced by family farmers;
• To allow family farmers to stock their products to be sold for fairer prices.
FOOD PURCHASE PROGRAM - PAA
• It consists on the Government buying food from family farmers without bureaucratics barriers.
• Appropriate legal framework – established by Article 19 of Law 10.696, July 2nd 2003, and further ruled by Decree in 2009
• Management Group – six (6) Ministries
• Executive managers - States, Cities and National Supply Company CONAB.
• Social Control: Federal level - National Council of Food and Nutrition Security (CONSEA)
and National Council of Sustainable Rural Development (CONDRAF); State level - State Councils CONSEA and CEDRS; Local Level - Municipal Councils of Food and Nutrition Security, Municipal
Council of Sustainable Rural Development, and others alike.
FOOD PURCHASE PROGRAM - PAA
FOOD PURCHASE PROGRAM - PAA
MODALITIES RESOURCES LIMITS EXECUTIVE MANAGER WAYS OF ACCESS
Direct Purchase MDS/MDA R$ 8 mil CONAB Individual, Cooperatives and Associations
Stock Formation MDS/MDA R$ 8 mil CONAB Cooperatives and Associations
Purchase from FamilyFarming withSimultaneous Donation
MDS
R$ 4,5 mil (Individual)
CONAB, States and
Cities
Individual, Cooperatives and AssociationsR$ 4,8 mil
(Cooperatives/ Associations)
Incentive to MilkProduction and Consumption MDS R$ 4 mil per
semester
Northeast Region and North Minas
Gerais
Individual, Cooperatives and Associations
Institutional Food Purchase ___ R$ 8 mil ___ Cooperatives and Associations
FOOD PURCHASE PROGRAM - PAA
• 2010: R$ 655,9 million (MDA and MDS), 155.600 families • 2011: R $ 665 million (MDA and MDS), 162.000 families• 2003 – 2011: R$ 3,2 billion (MDA and MDS), average of 160.000
families per year
RESULTS• It encourages the diversification of food produced by family farmers
• It increases the supply and consumption of quality food
• It values local food culture
• It ensures stable prices for producers
• It stimulates local economies development
FOOD PURCHASE PROGRAM - PAA
Challenges of PAA
• To enhance the production of organic foods and sociobiodiversity products;
• To strengthen local trading networks;
• To increase the participation of traditional communities and women in the different types of related work;
• To consolidate the interface between PAA and PNAE;
• To absorb the exceeding production of PBSM players.
FOOD PURCHASE PROGRAM - PAA
• Law nº 11.947/2009 – Law of School Feeding
Art. 14- “At least 30% (thirty percent) of the total financial resources granted by the National Fund for Educational Development (FNDE), within the PNAE, must be destined to acquire food products from family farmers, prioritizing land reform settlements, traditional indigenous and black rural communities (quilombolas) .
NATIONAL SCHOOL FEEDING PROGRAM - PNAE
P N A E
About R$1 billion
250 000 families may be benefited
(estimated)
47 million students
FamilyFarming
SchoolFeeding
WHO SELLS
Family Farmers and their economics organizatios, holders of DAP (PRONAF Eligibility Declaration) natural person or legal entity
Limit: R$ 20.000 /DAP/ year
WHO BUYS
Municipal and State Department of Education
NATIONAL SCHOOL FEEDING PROGRAM - PNAE
Local/Municipal
Region
Rural Territory
State
Country
Purchasing Priority
• Autonomous and deliberative council (two representatives nominated by organized civil society - where family farmers can participate)
• Goal: to monitor the use of resources and to ensure the quality of products
• Established within the states, the Federal District and Municipalities
CAE - SCHOLL FEEDING COUNCIL
•Weak organization among family farmers;
•Difficulty to access tax documents;
•Low production processing capacity;
•Lack of cooperation from cookers and nutritionists when preparing and handling the family farmers pruducts;
•Low infrastructure in schools (kitchen equipment and storage);
Barriers and Challenges
•Competition with the food industry – high scale and lower costs;
•Health legislation unsuitable for family farmers;
•Difficulty on distribution logistics;
•Trust issues between family farmers and education department;
•The players are not well trained for the trading process.
Barriers and Challenges
Large number of students Large budget
Urbanization = Less Family Farmers
High demand and insufficient supplies
=
BIG CITIES: A HUGE CHALLENGE
It is a methodology of ATER (Technical Aid and Rural Extension) acting on two fronts:
- along with the economical organizations of the family farmers, in order to adequate them to the school feeding demands.
- along with the municipalities’ managers, to help them on the trading process with the family farmers.
NUTRE PROJECT
- Northeast region- Pará- Minas Gerais- São Paulo- Rio de Janeiro
• Budget: R$ 10,5 millions• 275 family farmers organizations
supported• About 12.000 beneficiary families• 46 cities supported
NUTRE PROJECT’SRange
85% from FNDE’s budget go to biggest cities on the range of NUTRE Project
• Budget: R$ 25 millions• 200 cooperatives• 64 cities supported
NUTRE PROJECT2013
