Brazil's agricultural credit sector marks 30 years of Pronaf support amid regulatory challenge

Banco do Brasil marked three decades of participation in the National Program for Strengthening Family Farming (Pronaf), highlighting that the bank has disbursed roughly R$ 500 billion in rural credit, reaching about 2.5 million family farmers, fishers, aquaculturists and traditional communities across Brazil. In the current season alone, the bank released R$ 23 billion to support production, income generation and sustainable development on family farms.

The Rural Producers’ Association (FAEP) has sent a formal request to the Central Bank asking for a revision of Resolution 5.314/2026 issued by the National Monetary Council. The resolution, effective 1 July, adds the phrase “by its convenience and decision,” allowing banks to deny requests from producers to extend rural credit debts. FAEP argues the change contradicts established law and Supreme Court precedent, which treat debt extension as a right of the borrower, not a discretionary option for lenders. The association seeks either an amendment to the text or a provisional interpretation that preserves producers’ legal right to defer repayment.

Both developments underscore the importance of stable, accessible financing for Brazil’s family‑farm sector, which remains a cornerstone of national food security and rural livelihoods.