PUBLIC POLICIES FOR FAMILY FARMING

1995 – PRONAF is created DAP - 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 /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

Law nº , 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: MDA PRONAF Resources 02/0302/03 R$ 2,38 billion billion 03/0403/04 R$ 4,49 billion billion 04/0504/05 R$ 6,13 billion billion 05/0605/06 R$ 7,61 billion billion 06/0706/07 R$ 8,42 billion billion 07/0807/08 R$ 9,07 billion billion 08/0908/09 R$ 11,7 billion billion 09/1009/10 R$ 15 billion billion 10/1110/11 R$ 16 billion billion 11/1211/12 billion billion 12/1312/13 R$ 18 billion billion

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 , 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

MODALITIESRESOURCESLIMITS EXECUTIVE MANAGER WAYS OF ACCESS Direct PurchaseMDS/MDAR$ 8 milCONAB Individual, Cooperatives and Associations Stock FormationMDS/MDAR$ 8 milCONAB Cooperatives and Associations Purchase from Family Farming with Simultaneous Donation MDS R$ 4,5 mil (Individual) CONAB, States and Cities Individual, Cooperatives and Associations R$ 4,8 mil (Cooperatives/ Associations) Incentive to Milk Production 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), families 2011: R $ 665 million (MDA and MDS), families 2003 – 2011: R$ 3,2 billion (MDA and MDS), average of 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 /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 families may be benefited (estimated) 47 million students Family Farming School Feeding

WHO SELLS Family Farmers and their economics organizatios, holders of DAP (PRONAF Eligibility Declaration) natural person or legal entity Limit: R$ /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 beneficiary families 46 cities supported NUTRE PROJECT’S Range

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 PROJECT 2013

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