PUBLIC POLICIES FOR FAMILY FARMING

1. PUBLIC POLICIES FOR FAMILY FARMING

6. Exclusion DAP - PRONAF Eligibility Declaration is created 1995 – PRONAF is created 1999 – MDA is created Family Farming's Recognition by the Government Lack of Public Policies for Family Farmers • 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

7. Development of a comprehensive set of laws, regulations, programs and actions focusing on family farmers at all levels of government Government assuming the importance of Family farming in generating employment, income and food production • Definition of: • Family Farming • Rural Family Enterprise Family Farming's Law Nº 11.326/2006 Credit Creation of specific policies for family farming'Dignified Life in the Field' Insurance Expansion of Public Policies Development of Brazilian Democracy / Social Participation ATER • Fishermen • Afrodescendent rural communities (Quilombolas) • Traditional indigenous • Women • Land Reform Settlers Institucional Foods Markets Inclusion Public Policies Family Farming's Recognition by the Government MDA (since 2003)

8. 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.

9. NATIONAL PROGRAM FOR FAMILY FARMING STRENGTHENING - PRONAF • 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.

10. R$ 18 billion R$ 16 billion R$ 16 billion R$ 15 billion R$ 11,7 billion R$ 9,07 billion PRONAF Resources R$ 8,42 billion R$ 7,61 billion R$ 6,13 billion R$ 4,49 billion R$ 2,38 billion 03/04 04/05 09/10 06/07 10/11 12/13 11/12 08/09 02/03 07/08 05/06 Source: MDA

11. FAMILY FARMING INSURANCE- SEAF • Insurance for thefamilyfarmerswhohireagriculturalfundingat PRONAF. Theaccession to thisservice is automatic. • It coverslossesdue to weathereventsandnonpreventablepests. • It’sbasedontheregion’sagriculturalzoning. • Insuredvalue: 100% ofthefinancedvalueand 65% oftheexpected 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.

12. CROP GUARANTEE • It assuresmininumincome for familyfarmersfromtheSemi-Aridregion wholose more than 50% oftheirproduction in case ofdroughtorflood. • Beneficiaries: producersofrice, cotton, beans, cassava andcorn, included in PRONAF, with a monthlyincomeup to 1.5 minimumwage (rural retirementnotincluded). • Farmer’saccessionbeforeplanting. Beneficiaries’ selecion is madeby the Municipal Council For Sustainable Rural Development. • It’s a federativeProgram: Federal Government(20%), States(6%) and municipalities (3%), andFamilyFarming(1%) ontheCropGuarantee Fund.

13. FAMILY FARMING PROGRAM FOR PRICING GUARANTEE - PGPAF • It’s na insurance for thefamilyfarmerswho use PRONAF for currentspendingorinvestiment, in case oflowprices in themarket. • It ensures a discountonthefundingpayment, whichconsistsonthedifferencebetweenthemarketpriceandtheproduct’sguaranteeprice. • It ensurestheremunerationofthefamilyfarmer’sproductioncosts. • It’stradedbybanks, MDA and CONAB.

14. NATIONAL POLICY FOR TECHNICAL AID AND RURAL EXTENSION - PNATER • Themaingoaloftechnicalaidand rural extension (ATER)is to improvetheproduction systems andtheaccess to resources, servicesandincome, in a sustainablemanner. • There are 13 thousand ATER techniciansall over Brasil. They are actingonthe municipal offices, which are registeredon SIBRATER. • SIBRATER: Brazilian System ofTechnicalAidand Rural Extension. It’smanagedby MDA • AllOfficial ATER Entities are registered in SIBRATER • Total: 451 • Federal Goverment-owned: 41 • Non Federal Government-owned: 410

15. PAA and PNAE: Institutional Food Markets • 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

17. FOOD PURCHASE PROGRAM - PAA • The PAA isone 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.

18. 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.

19. FOOD PURCHASE PROGRAM - PAA

20. FOOD PURCHASE PROGRAM - PAA

21. 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

22. 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.

24. NATIONAL SCHOOL FEEDING PROGRAM - PNAE • 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) .

25. P N A E Family Farming School Feeding 250 000 families may be benefited (estimated) 47 million students About R$1 billion

26. NATIONAL SCHOOL FEEDING PROGRAM - PNAE 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

27. Local/ Municipal Region Rural Territory State Country Purchasing Priority

28. CAE - SCHOLL FEEDING COUNCIL • 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

29. Barriers and Challenges • 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);

30. 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.

31. BIG CITIES: A HUGE CHALLENGE Large number of students Large budget Urbanization = Less Family Farmers = High demand and insufficient supplies

32. NUTRE PROJECT 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.

33. NUTRE PROJECT’S Range • 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

34. NUTRE PROJECT 2013 • 85% from FNDE’s budget go to biggest cities on the range of NUTRE Project • Budget: R$ 25 millions • 200 cooperatives • 64 cities supported

36. THANK YOU! www.mda.gov.br E-mail: alimentacaoescolar@mda.gov.br paa@mda.gov.br Telefone: 55 (61) 2020 0788