World Bank Approves $1.6 Billion Initiative to Transform Brazil’s Agrifood System

The program’s initial phase will be launched in Bahia, where state government efforts will focus on empowering family farmers through cooperatives and community organizations.

The World Bank Board of Directors has greenlit the Transforming Brazil’s Agrifood System program, a historic $1.6 billion project aiming to revamp Brazil's agriculture sector. This program, designed to uplift family farmers and strengthen food security, also aims to promote sustainable agricultural practices and build resilience against climate change in rural areas. Set to run through 2034, the program will benefit an estimated 421,000 family farmers and improve the livelihoods of nearly 1.2 million rural residents across 12 states in Brazil.

With up to $1.289 billion financed by the International Bank for Reconstruction and Development (IBRD) and an additional $313.20 million from counterpart financing, the program will be executed with oversight from Brazil's Ministry of Agrarian Development and Family Farming (MDA) and the Ministry of Agriculture and Livestock (MAPA).

Supporting Brazil’s Family Farmers and Rural Food Security

Family farmers in Brazil comprise about 77% of the country’s rural properties and play an essential role in national food security. They produce significant portions of the country's cassava, beans, rice, wheat, milk, and poultry, underscoring their importance to Brazil’s agricultural sector. However, many face challenges in scaling productivity, accessing larger markets, and adapting to climate impacts.

By offering family farmers access to business development resources, the World Bank program aims to elevate these smallholders and position them to thrive. A variety of tailored interventions will address specific needs, from technical support and sustainable farming practices to direct financial assistance through matching grants. Governments will have access to a menu of customizable activities, designed to align with both state-level goals and broader national priorities such as market access, environmental sustainability, and productivity growth.

A Comprehensive Approach to Sustainable Growth

The program’s initial phase will be launched in Bahia, where state government efforts will focus on empowering family farmers through cooperatives and community organizations. This phase includes tailored support packages, technical assistance, and access to financing options designed to enhance business capacity and promote agribusiness growth. In addition to boosting productivity, this phase in Bahia will emphasize access to safe drinking water for rural families, which will improve public health, reduce household burdens, and offer particular relief for women by reducing water-related chores. The initiative will also support the creation of a rural water state policy, promoting a strategy for resilient and sustainable water management.

According to Paulo Teixeira, Minister of Agrarian Development and Family Farming, the program reinforces President Lula’s commitment to empowering family farmers and securing high-quality food for Brazilian families. "This partnership is key to strengthening family farming, which plays a vital role in transforming our agri-food systems,” he noted.

Catalyzing Long-Term Growth Across Brazil’s Agricultural Landscape

World Bank Country Director for Brazil, Johannes Zutt, emphasized that this multi-phased program will support both state and federal governments in pursuing long-term agricultural and economic development objectives. “Starting in Bahia, the program is setting a foundation for a more prosperous future for family farmers in Brazil," Zutt said. The program’s scalable approach encourages replicable practices and provides a sustainable model for advancing Brazil's rural economy across the country.

This ambitious program represents a significant step in Brazil’s journey toward a resilient, inclusive, and climate-smart agriculture system, with the potential to transform the agrifood sector for generations to come.