Reinventing Rural Credit: A New Model for Brazil’s Farmers

If the story of participants from one small farming community’s strengthened resilience can be replicated elsewhere– and it can– then it’s worth looking closely at the Mato Grosso do Sul region in Central-West Brazil.

With the recent publishing of the Impact Report on the new Systemic Credit Program, we now have a richer, fuller picture of what's possible. The program was funded by Rabo Foundation and created by local organizations– the APOMS Network in partnership with Alimi Impact Ventures. After being active for more than three years, we can see the results of an average loan of €3,900 involving 45 family farms and 2 cooperatives.

However, it’s not the size of the loan that tells the story, but everything surrounding it.

Described as a “new credit perspective” by the President of savings & credit cooperative Cresol Centro-Sul RS/MS, Mauri Picoli, this is a story of what happens when funding goes beyond the numbers and into the homes and lives of farmers. As Picoli explains, “Our focus is on communities and on strengthening families, because we understand that rural development is not built on numbers alone.”

The program was born out of the need to address the conflict between the rigidity and flexibility– between banks and family farms. When both banking systems and family farms are rooted in tradition, who can adapt? Or rather, who should? On a family farm, a multifunctional mindset is key. In the impact report, it cites the great example of raising chickens. Eggs can be a product, a family meal, and a fertilizer. Workers are family members, and roles are ever-evolving. Accepting this reality is key. Traditional expectations from credit systems of single-purpose loans based on clearly measured financial reporting simply cannot be met in these cases.

Instead of compromising the family farming dynamic, the program aims to strengthen it.

It’s aptly named the Systemic Credit Program because the solution must be a holistic one. And this is where the program is unique– opportunities for growth and efficiency are assessed individually for each farming family first. More importantly, the voices from within the family farm are not just considered, but are a necessary component when it comes to both tangible and intangible considerations. What are the family’s values? What leftovers could be repurposed? Where can each family member best contribute their time? Olacio Komori, director of APOMS and creator of the program, says, “The farming system diagnosis as a credit assessment tool is at the heart of the Systemic Credit line, as it is the credit assessment method that innovates by considering multiple dimensions of the functioning of small family farms.”

This multilayered approach also includes support for reducing waste and achieving sustainability goals. For example, alongside the ability to invest in equipment, a farmer also has access to technical assistance that guides them in adopting agroecological practices while using that equipment. Another key component is the Rural Community Development Agents Course aimed at the next generation of farmers, offering young people 450 hours of education on topics from agroecology to public policy.

The impact report revealed that participating farmers’ monthly gross revenue is projected to increase from €7,933 to €11,825– more than 40%.

But if many goals in this endeavor were to improve intangible aspects of family farming, then so must the program’s impact story. One family bought a tractor with their credit funds, saving them valuable time. A female farmer increased sales with a second greenhouse. The author of the impact report and Climate Smart Institute consultant, Nobuiuki Ito, sums it up succinctly: “What the experience in Mato Grosso do Sul has shown is that the result of this approach is increased income, better working conditions, improved quality of life, and climate resilience.”

And this was evident in the insights shared directly by the producers themselves. For Evaristo Rodrigues, an organic farmer in the APOMS Network, the key difference in the program’s success was having “someone to guide you properly.” He continued, “Income increased, hard work decreased and even leftovers became useful here. Today, I see that every adjustment was worth it. It was the technical assistance that showed how everything here is connected.”

It's also important to consider the ripple effects, and what they could mean for the future. For instance, nearly 20% of the farmers who received credit were women. Yet of the young people trained in community management in the Rural Community Development Agent’s Course, 72% were women. And one of them even ran for city council in her local elections. In terms of sustainability, 278 hectares of farmland are now part of a plan for organic production. Both figurative and literal seeds of change have been planted.

An important piece of context provided even more reason for optimism when performance was examined during a severe drought. While product delivery decreased among producers outside the program, those participating in the Systemic Credit Program reported a steady volume of deliveries. This stability is especially significant in this area of Brazil, a region increasingly vulnerable to extreme droughts. Climate resilience is no longer just an advantage– it’s a necessity for the future. And if building resilience requires flexibility, the outcome of this program has shown that when everyone participates, we have the power to drive lasting change.

That’s why, in 2025, the Systemic Credit Program is expanding in the same region and being replicated in southern Brazil, a clear signal that this model is not only viable– it’s ready to scale.