Agricultural Policy Monitoring and Evaluation 2025

6. Brazil

Main findings

Support to agriculture

Brazilian agriculture has low levels of support and protection. The Producer Support Estimate (PSE) fell from 7.6% of gross farm receipts in 2000-02 to 5.4% in 2022-24, which is below the average of the 54 countries covered in this report (12.5%). Domestic prices almost align with international markets, with a ratio of producer to border reference prices (Nominal Protection Coefficient, NPC) of 1.04. Average Market Price Support (MPS) is relatively small, but still accounts for more than 66% of the PSE. The highest rates of positive Single Commodity Transfer (SCT) are for cotton, rice, pig meat, and wheat.

Budgetary support to producers is provided through input support in particular credit at preferential rates and crop insurance. Concessional credit is available for farm marketing, working capital, and fixed capital investment. Since the late-2000s, all support based on input use, mainly credit and insurance, is conditional on environmental criteria and specific farming practices.

Support to general services (General Service Support Estimate, GSSE) amounted to 0.7% of the country’s agricultural value of production in 2022-24, down from 3.4% in 2000-02. More than 90% of that support goes to agricultural research and development (R&D), technology transfer, and extension services, with the rest used for inspection and control and infrastructure. Expenditures on R&D and extension services are equivalent to 0.7% relative to the agricultural value of production, which is above the average of the 54 countries covered in this report (0.5%). The Total Support Estimate (TSE) declined slightly from 0.73% of Gross Domestic Product (GDP) in 2000-02 to 0.68% in 2022-24.

Key recent policy changes

The Harvest Plan of 2024-25 increased the total credit allocation for commercial agriculture for the 2024‑25 harvest by 10% from the 2023-24 period, reaching BRL 400.59 billion (USD 74 billion), a new record amount. Working capital and commercialisation credit represent 73% of the total credit, around BRL 293 billion (USD 54 billion), and the remaining 28%, equivalent to BRL 107.3 billion (USD 19.9 billion), is directed to investment. An additional BRL 108 billion (USD 20 billion) was made available via Agribusiness Credit Letters (LCAs).

Credit for smallholders, traditional agriculture, and family agriculture was set at BRL 76 billion (USD 14 billion) for the 2024-25 period. Expenditures on rural insurance subsidies were established at BRL 5 billion (USD 928 million). This subsidy covers approximately 10 million ha (5% of total agricultural land), resulting in a total insurance coverage of BRL 45 billion (USD 8.35 billion).

Rural credit is conditional on the adoption of sustainable agricultural practices, with a focus on the recovery and conversion of degraded soils, reforestation, biodiversity protection, adaptation and mitigation to climate change, zoning, etc.

Assessment and recommendations

• Credit at preferential interest rates is a key part of agricultural support in Brazil. This system could be improved by reducing the share of concessional loans for working capital to commercial farms and by simplifying regulations and procedures to make it easier for small and medium-sized farms to access credit.

• Credit programmes that provide incentives for sustainable agriculture could be expanded to reach more farmers to accelerate the transition to an environmentally sustainable sector. These programmes should have robust measurement and verification mechanisms. A larger share of supported credit should be earmarked for technological packages focusing on innovation, modernisation, climate-change mitigation and adaptation, and productivity. Furthermore, subsidised agricultural insurance schemes should be evaluated to determine their impacts and efficiency, and to ensure that they do not crowd out private insurance initiatives.

• Agricultural credit and insurance programmes provided under environmental criteria and zoning rules (ZARC), should continue to be assessed concerning outcomes such as targets related to deforestation and GHG emissions. Moreover, the impact of environmental conditionality set by the Environmental Rural Registry (CAR), the ZARC, and the Forest Code should remain the basis for improving policy design, along with specific programmes such as the RenovAgro, and initiatives against deforestation. More needs to be done to promote sustainability practices for all types and sizes of farms, including continued efforts to limit potentially illegal land clearing for agriculture. The enforcement of the Forest Code needs to be strengthened to build on recent progress to fully halt illegal deforestation.

• Brazil only has one regional trade agreement (RTA) with environmental provisions. This RTA includes provisions on domestic environmental laws and policies. However, the country's main agricultural policies, which include credit, insurance, zoning, adaptation and mitigation efforts, reforestation, soil recovery, biodiversity protection, among others, are related to the sustainability of trade, as all these policies cover agricultural export-oriented products. The inclusion of effective environmental provisions in future agreements could include enabling assistance, promoting access and adoption of low-emission technologies, and knowledge exchange on sustainable agriculture.

• GSSE support is mostly invested in R&D, technology transfers, and extension services. But these public outlays represent less than 1% of the value of agricultural production. Investments in research and extension capacity should be increased in line with sector growth, which is more pressing given the low Total Factor Productivity growth observed in the sector over the past decade.

• Small-scale farms are less likely to benefit from technology transfer and adoption, and hence the need for targeted efforts. One solution is creating innovation networks for medium- and small-scale farmers in all regions of the country and for all production systems.

• The ABC + Plan is the national sectoral strategy to adapt the sector to climate change and to lower emissions in agriculture via the implementation of tailored adaptation and mitigation practices; it needs to be monitored and evaluated to ensure progress in the sustainable transformation of production systems for both domestic and international markets.

Development of support to agriculture

Table 6.1. Brazil: Estimates of support to agriculture

Million USD

	2000-02	2022-24	2022	2023	2024p
Total value of production (at farm gate)	35 530	221 558	219 124	233 627	211 923
of which: share of MPS commodities (%)	77.53	88.86	89.50	87.84	89.24
Total value of consumption (at farm gate)	34 557	131 652	135 812	146 090	113 053
Producer Support Estimate (PSE)	2 868	12 119	9 744	10 411	16 202
Support based on commodity output	1 012	8 109	6 120	5 863	12 346
Market price support¹	972	8 081	6 116	5 810	12 316
Positive market price support	1 178	8 081	6 116	5 810	12 316
Negative market price support	-205	0	0	0	0
Payments based on output	40	29	4	53	30
Payments based on input use	1 856	3 956	3 577	4 484	3 806
Based on variable input use	825	2 429	2 073	2 884	2 330
with input constraints	0	2 429	2 073	2 884	2 330
Based on fixed capital formation	955	1 506	1 483	1 579	1 457
with input constraints	0	1 506	1 483	1 579	1 457
Based on on-farm services	76	21	21	21	20
with input constraints	0	0	0	0	0
Payments based on current A/An/R/I, production required	0	54	48	64	50
Based on Receipts / Income	0	54	48	64	50
Based on Area planted / Animal numbers	0	0	0	0	0
With input constraints	0	0	0	0	0
Payments based on non-current A/An/R/I, production required	0	0	0	0	0
Payments based on non-current A/An/R/I, production not required	0	0	0	0	0
With variable payment rates	0	0	0	0	0
with commodity exceptions	0	0	0	0	0
With fixed payment rates	0	0	0	0	0
with commodity exceptions	0	0	0	0	0
Payments based on non-commodity criteria	0	0	0	0	0
Based on long-term resource retirement	0	0	0	0	0
Based on a specific non-commodity output	0	0	0	0	0
Based on other non-commodity criteria	0	0	0	0	0
Miscellaneous payments	0	0	0	0	0
Percentage PSE (%)	7.56	5.41	4.37	4.37	7.51
Producer NPC (coeff.)	1.03	1.04	1.03	1.03	1.06
Producer NAC (coeff.)	1.08	1.06	1.05	1.05	1.08
General Services Support Estimate (GSSE)	1 242	1 595	1 509	1 742	1 533
Agricultural knowledge and innovation system	663	1 497	1 406	1 646	1 437
Inspection and control	51	18	18	18	17
Development and maintenance of infrastructure	471	46	46	48	44
Marketing and promotion	5	3	4	3	3
Cost of public stockholding	52	31	36	26	31
Miscellaneous	0	0	0	0	0
Percentage GSSE (% of TSE)	29.79	10.90	12.51	13.39	8.28
Consumer Support Estimate (CSE)	-1 175	-3 671	-3 069	-797	-7 145
Transfers to producers from consumers	-1 174	-4 637	-3 739	-2 935	-7 238
Other transfers from consumers	-278	-302	-140	-82	-686
Transfers to consumers from taxpayers	31	816	809	860	778
Excess feed cost	245	453	0	1 359	0
Percentage CSE (%)	-3.33	-2.88	-2.27	0.55	-6.36
Consumer NPC (coeff.)	1.04	1.04	1.03	1.02	1.08
Consumer NAC (coeff.)	1.03	1.03	1.02	1.01	1.07
Total Support Estimate (TSE)	4 141	14 530	12 062	13 013	18 513
Transfers from consumers	1 451	4 940	3 878	3 017	7 924
Transfers from taxpayers	2 967	9 893	8 324	10 078	11 276
Budget revenues	-278	-302	-140	-82	-686
Percentage TSE (% of GDP)	0.72	0.70	0.62	0.60	0.86
Total Budgetary Support Estimate (TBSE)	3 169	6 449	5 946	7 203	6 197
Percentage TBSE (% of GDP)	0.55	0.31	0.30	0.33	0.29
GDP deflator (1986-88 = 100)	100	503	481	503	524
Exchange rate (national currency per USD)	2.37	5.18	5.16	4.99	5.39

Note: p: provisional. NPC: Nominal Protection Coefficient. NAC: Nominal Assistance Coefficient. A/An/R/I: Area planted/Animal numbers/Receipts/Income. 1. Market Price Support (MPS) is net of producer levies and excess feed cost. MPS commodities for Brazil are: wheat, maize, rice, soybean, sugar, milk, beef and veal, pig meat, poultry, cotton, coffee.

Source: OECD (2025), “Producer and Consumer Support Estimates”, OECD Agricultural policy monitoring (database), https://data-explorer.oecd.org/.

Policy landscape

Main policy instruments

The annual Agricultural and Livestock Plan (the Harvest Plan), administered by the Ministry of Agriculture and Livestock (MAPA), defines the key parameters of the agricultural policy (MAPA, 2024[1]). The plan defines the allocation of resources through credit lines and their respective interest rates. In addition, family farming is managed by the Ministry of Rural Development and Family Farming (MDA). Brazilian agricultural policy has been stable over the past decade, with a focus on:

• rural credit (since the 1960s)

• risk management programmes, including subsidised insurance programmes (since 2005)

• limited use of minimum and reference prices and marketing interventions (e.g. government purchases of food)

• agricultural land zoning with environmental compliance

• promotion of biofuels

• soil recovery and reforestation.

Brazil’s dual agricultural plans for 2024-25 search for an inclusive approach to rural credit and development. While the Commercial Plan focuses on scale, modernisation, and sustainability for agribusiness, the Family Farming Plan emphasises food security, social inclusion, and agroecological transition. Together, they aim to foster a resilient, productive, and equitable agricultural sector.

Credit at preferential interest rates is jointly administered between the Central Bank, the Treasury, the Secretariat of Economic Policy (Ministry of Finance) and the MAPA. Most rural credit is allocated under the National Rural Credit System (SNCR) and provided at preferential interest rates with differentiated conditions for family farmers (PRONAF), small and medium-sized farmers (PRONAMP) and commercial farms. The main sources of preferential rural credit are “compulsory resources” or lending quotas for commercial banks equivalent to around 25% of deposits and 59% of Rural Saving deposits, Constitutional Funds, and loans from the National Bank for Economic and Social Development (BNDES).

Short-term credit is provided for commercialisation and working capital, and long-term credit for investments in fixed capital formation. Long-term credit is provided through the Programme RenovAgro (former ABC+) used for investments on adaptation and mitigation, Moderfrota used for machinery and equipment, the PRONAF and PRONAMP with their investment component, and Inovagro, Moderagro, Proirriga, etc. Additional sources of rural credit are the Coffee Fund (FUNCAFÉ) and the Agribusiness Credit Notes (LCAs).

The rural insurance premium programme (PSR) provides subsidised insurance to a diverse range of producers, including commercial producers who establish contracts with insurance companies listed by the government. The general agriculture insurance programme (PROAGRO) offers farmers partial compensation for investment losses on working capital loans.

Small-scale family farms can benefit from the PROAGRO-Mais, the family farming insurance (SEAF), as well as, in the north-east of the country, the crop guarantee programme (Garantía Safra, GS). Both the rural credit and insurance programmes must comply with environmental criteria defined by the Environmental Rural Registry (CAR).

Minimum guaranteed prices (PGPM) are used in some regions of the country. These cover some crops and livestock products. Minimum prices are set by the National Monetary Council (CMN) based on domestic and international prices and the evolution of production costs in different parts of the country. The National Food Supply Company (CONAB) operates these programmes on behalf of MAPA. The PGPM for the 2023-24 harvest identifies 27 products, including main grains for the domestic market. The government allocated BRL 1 billion (USD 303 million) in 2024-25 to this programme, which includes both government purchases of these products and income deficiency payments.

Income deficiency payments are provided from time to time and are calculated as the difference between the market price and the minimum reference price (e.g. the Rural Equity Prize programme called PEPRO, and the Product Reward Prize programme known as PEP). These payments are provided only when the market price is lower than the minimum price.

Brazil also has the Rural Product Certificate (CPR Verde), a bond of mandatory registration authorised by the Central Bank. The bond is a promise of future delivery of agricultural products subject to sustainable and conservation practices, which works as a market alternative for environmental services; this bond is one of the most important instruments for rural financing in Brazil.

Credit is conditional on zones of climatic risks (Agricultural Risk Zoning, ZARC), which links agricultural support to farming practices and activities adapted for the environmental sustainability of each geographical zone. Compliance with zoning is also required to access insurance programmes. Moreover, zoning is also in alignment with the Forest Code, which establishes standards for protecting native vegetation in permanent preservation areas, legal reserves, restricted use, forest exploitation, and related matters.

Rural environmental registration of geo-referenced information on rural property, including property perimeters, location of Permanent Preservation Areas, Legal Reserves, Restricted Use Areas, and areas of agricultural production, is compulsory across the country since 2012 to obtain any type of support.

Lastly, the country has also developed the Brazilian Agricultural Policy for Climate Adaptation and Low Carbon Emission (ABC+Plan), has the national sectoral strategy to adapt the sector to climate change. This policy is responsible for reducing emissions through the implementation of sustainable agricultural practices. This policy is the umbrella of all agricultural policy instruments related to adaptation and mitigation.

Policies for trade and sustainability in agro-food markets

Brazil only has one regional trade agreement (RTA) with environmental co-operation provisions. The RTA with Chile has an article on sustainable agriculture, paragraph 3, and has been in application since 2022 (Frezal and Deuss, 2025[2]). This RTA also includes provisions on domestic environmental laws and policies.

Brazil claims that all its agricultural policies, which include credit, insurance, zoning, adaptation and mitigation to climate change, reforestation, soil recovery, biodiversity protection, etc., are indirectly related to trade sustainability, as all these policies cover agricultural export-oriented products (MAPA, 2025[3]).

Recent policy developments

Domestic policy developments in 2024-25

The 2024-25 Harvest Plan sets out the financial resources and guidelines for Brazil’s main policy instruments, such as rural credit, agricultural insurance, commercialisation support, zoning programme, minimum and reference prices and biofuels. The Harvest Plan aims to strengthen both commercial agribusiness and family farming. The total credit allocation for commercial agriculture for the 2024-25 harvest was increased by 10% from the 2023-24 period, reaching BRL 400.59 billion (USD 74 billion), a new record amount (MAPA, 2025[3]).

Working capital and commercialisation credit represent 73% of the total credit, around BRL 293 billion (USD 54 billion), and the remaining 28% is directed to investment equivalent to BRL 107.3 billion (USD 19.9 billion). An additional BRL 108 billion (USD 20 billion) was made available via Agribusiness Credit Letters (LCAs). Most of this credit, under preferential rates, needs to comply with environmental requirements (MAPA, 2024[1]; MAPA, 2025[3]).

Key features of this credit are: 1) interest rates set at 8% per year for National Program for Support to Medium Rural Producers (PRONAMP) beneficiaries; 2) investment loans with interest rates ranging from 7% to 12% annually, depending on the programme; 3) environmental incentives, including rate reductions of up to 1 percentage point for producers with registered Rural Environmental Cadastres (CAR) or sustainable practices; 4) expansion of Sustainable Agricultural Production Systems Financing Program (RenovAgro), to include support for organic farming, degraded soil recovery, and conservation practices.

Expenditures on rural insurance subsidies (PSR) were BRL 1.07 billion (USD 190 million) in 2024. This subsidy covers approximately 7 million ha, resulting in a total insurance coverage of BRL 51 billion (USD 9.6 billion).

Credit destined for smallholders, traditional agriculture, and family agriculture was set at BRL 76 billion (USD 14 billion). This credit is implemented by PRONAF. Preferential interest rates vary from 0.5% to 6% depending on the type of credit given to farmers. All credits under PRONAF must comply with sustainability practices. Key features of this credit are:

• interest rates reduced to 3% per year for staple food production (beans, rice, cassava, milk, fruits, vegetables)

• interest rates of 2% per year for agroecological, organic, and biodiversity-based production

• new credit line for acquiring small-scale machinery (e.g. micro tractors) at 2.5% interest. This measure supports the mechanisation of family farming

• expanded credit limits for women up to BRL 15 000 (USD 2 800). Also, an independent limit for youth of BRL 8 000 (USD 1 500)

• inclusion of family farmers and co-operatives in federal guarantee funds to improve credit access.

Trade policy developments in 2024-25

In December 2024, the European Union and four Mercosur countries – Argentina, Brazil, Paraguay and Uruguay – reached a political agreement on the trade pillar of the EU-Mercosur association agreement, which has as main objectives: 1) increasing bilateral trade and investment, and lowering tariff and non-tariff trade barriers, notably for small and medium-sized enterprises; 2) create more stable and predictable rules for trade and investment through better and stronger rules, e.g. in the area of intellectual property rights (including geographical indications), food safety standards, competition and good regulatory practices; and 3) promote joint values such as sustainable development, by strengthening worker’s rights, fight climate change, increase environmental protection, encourage companies to act responsibly and uphold high food safety standards (MAPA, 2025[3]).

The average applied most-favoured-nation (MFN) tariff on agricultural imports in 2023 was 8.1%, below the 11.7% faced by non-agricultural products. Certain sub-sectors face higher rates, such as dairy (15.3% on average), and sugars (13.2%) (WTO, 2025[4]).

Policy context

Key economic and agricultural statistics

Brazil is one of the 10 biggest economies of the world. The country is the largest in Latin America in terms of area and population. It has abundant land and water resources and is a major agricultural producer and exporter. The share of agriculture in Brazil’s GDP increased from 5.5% in 2000 to 6.2% in 2023, while its share in employment decreased from 15.4% to 8.2% during the same period (Table 6.2). Agro-food exports have grown in importance for Brazil, representing 44.1% of its total exports in 2023. Arable land accounts for 25% of Brazilian agricultural land. Brazil is among the world’s leaders in producing soybeans, poultry, beef, cotton, corn, and orange juice. Around 70% of the total value of agricultural production comes from crop products, and the remaining 30% from livestock products. The main product in Brazilian exports is soybeans in grain, meal, and oil.

Table 6.2. Brazil: Contextual indicators

	Brazil		International comparison
	2000*	2023*	2000*	2023*
Economic context			Share in total of all countries
GDP (billion USD in PPPs)	1 582	4 457	3.9%	2.9%
Population (million)	174	211	4.1%	4.0%
Land area (thousand km2)	8 358	8 358	10.2%	10.1%
Agricultural area (AA) (thousand ha)	228 324	222 895	7.6%	7.7%
			All countries1
Population density (inhabitants/km2)	21	25	52	64
GDP per capita (USD in PPPs)	9 092	21 107	9 368	29 013
Trade as % of GDP	8.8	13.6	12.3	14.9
Agriculture in the economy			All countries1
Agriculture in GDP (%)	5.5	6.2	2.9	3.5
Agriculture share in employment (%)	15.4	8.2	-	-
Agro-food exports (% of total exports)	23.4	44.1	6.4	8.1
Agro-food imports (% of total imports)	7.2	5.2	5.8	7.3
Characteristics of the agricultural sector			All countries1
Crop in total agricultural production (%)	67.3	69.3	-	-
Livestock in total agricultural production (%)	32.7	30.7	-	-
Share of arable land in AA (%)	19.9	25.0	31.8	33.3

Note: *or closest available year.

1. Average of all countries covered in this report.

Sources: OECD statistical databases; International Labour Organisation (ILO); UN Comtrade; World Bank, WDI; FAO database and national data.

In 2024, Brazilian GDP grew at 3.2% in real terms (Figure 6.4). GDP growth has stabilised around 3% since 2021, after a negative growth due to the pandemic in 2020. Unemployment rates reached 7.82% during 2024, this number has decreased since 2020, when it reached 13.74%. In 2024, inflation was 4.37%, a significant reduction from 9.28% in 2022. This reduction was mainly explained by changes in food and energy prices.

Agro-food exports in Brazil have exceeded USD 100 billion since 2021, generating an annual agro-food trade surplus of around USD 137 billion in 2023 (Figures 6.5A and 6.5B). Around 56% of Brazilian agro-food exports are primary products for industry, and 22% of processed food for industry for 2023. On the other hand, Brazilian food imports were around 40% processed for consumption and 26% processed for industry by 2023.

Between 2013 and 2022, Brazilian agricultural production increased at an annual rate of 1.93%, above the world average (1.76%). Increases in production were driven by intermediate input growth (1.61%) and Total Factor Productivity (TFP) growth of 0.4% per year, below the global average (0.78%), while there was a declining use of primary factors in agricultural production of 0.05% per year during the period 2013-22 (Figure 6.6).

In 2023, agriculture accounted for 43.3% of GHG emissions, which is slightly below the level observed in 2000 (45.3%), but still high compared to the OECD average of 10.1% (Table 6.3). The use of energy by the agricultural sector increased up to 5.6% of total use in 2013-22, also above the OECD average. This is due to a larger share of the agricultural sector in the Brazilian economy and the importance of pasture-based livestock. While the agriculture’s share of water abstractions remained high at 61.3%, water stress is low (0.8). Nutrient surpluses in Brazil have increased since 2000, making both nitrogenous and phosphorous balances higher than the OECD average.

Table 6.3. Brazil: Productivity and environmental indicators

	Brazil		International comparison
	1991-2000	2013-2022	1991-2000	2013-2022
			World
TFP annual growth rate (%)	3.0%	0.4%	1.7%	0.8%
			OECD average
Environmental indicators	2000*	2023*	2000*	2023*
Nitrogen balance, kg/ha	21.0	35.0	32.0	29.7
Phosphorus balance, kg/ha	11.8	19.8	3.3	2.5
Agriculture share of total energy use (%)	4.8	5.6	1.7	2.0
Agriculture share of GHG emissions (%)	45.3	43.3	8.7	10.1
Share of irrigated land in AA (%)	1.4	2.3	-	-
Share of agriculture in water abstractions (%)	57.7	61.3	47.0	49.5
Water stress indicator	0.5	0.8	8.7	..

Note: * or closest available year.

Sources: USDA Economic Research Service, Agricultural Productivity database; OECD statistical databases; FAO database and national data.

Historical trends in agricultural policies

Before the 1990s, Brazil had a history of government intervention in the agricultural sector. Price interventions were first introduced in the 1940s amid food security concerns, and starting in the 1950s, Brazil adopted an import-substitution industrialisation strategy with wide-ranging controls over supply and prices in the agro-food sector. Prices were both supported for producers and subsidised to consumers.

The National Agency for Food Supplies (SUNAB) regulated the distribution of basic foodstuffs and set prices and profit margins for all levels of the food chain, including low prices for consumers. SUNAB also controlled agro-food imports and exports. At the producer level, a general price support system existed for rice, maize, soybeans, beans, cassava, and cotton. Another government agency, the Company for Production Financing (CFP), carried out direct purchases of these commodities at minimum guaranteed prices. Marketing boards were created for wheat, sugar, and coffee. They set overall production volumes, administered marketing quotas, and controlled prices and trade (Anderson and Valdes, 2007[5]; OECD, 2005[6]).

These policies continued until the late 1980s, when the government undertook a general restructuring of the economy. Trade was liberalised, state-owned enterprises privatised, domestic markets deregulated, and a customs union established with other South American countries (Mercosur). Agricultural policies were no exception to this move towards openness and less state intervention. State enterprises related to agriculture were dismantled or their functions reduced. Agricultural import tariffs were substantially reduced. Export licensing for primary agricultural products was removed. Brazilian producers faced fewer controls and obtained freer access to world commodity and input markets (OECD, 2015[7]).

Since the mid-2000s, policy has emphasised support to smallholders and setting minimum prices for staples produced in the poorest regions of the country. Purchases of staple foods to be distributed to poor populations have been enhanced, and mandatory sugar cane ethanol fuel-blending continue to be imposed. The National Programme for the Production and Use of Biodiesel was established in 2005, and the blending of biodiesel with mineral diesel became mandatory in 2008. The blend percentage varies between 6% and 15%. Biodiesel is sold through public auctions, where preference is given to manufacturers that support family farming. In addition to prioritising the acquisition of raw materials from family farms, technical assistance by the government is targeted at these farms. Since 2023, the country has emphasised environmental sustainability measures for the sector, such as adaptation and mitigation to climate change, as well as reducing deforestation rates (Table 6.4).

Table 6.4. Brazil: Agricultural policy trends

Period	Broader framework	Changes in agricultural policies
Prior to 1990s	Import substitution Industrialisation model Closed economy	Fixed exchange rates High agricultural tariffs Production and marketing control of agricultural products (CFP state company) Minimum agricultural prices for producers (CFP state company) Subsidised prices of agricultural products for consumers (SUNAB state company) Creation of the Brazilian Agricultural Research Corporation (EMBRAPA) Consumption of sugar cane ethanol is stimulated through obligatory blending of ethanol with gasoline
1990-2005	Reforms to trade liberalisation	Floating exchange rates Removal of agricultural price and output controls Reduction of agricultural tariffs of both outputs and inputs Dismantling of marketing boards for wheat, sugar and coffee Dismantling of SUNAB and CFP WTO agreement and Mercosur signed Minimum prices of basic products kept but reduced Subsidised credits (working capital and marketing loans) enhanced as the financial crisis hit farmers Liberalisation of the wheat, coffee and sugar sectors Creation of the Ministry of Rural Development and Family Farming (MDA) Consumption of sugar cane ethanol was also stimulated by the growth of the flex fuel vehicle fleet. Flex Fuel cars have represented more than 85% of new vehicle sales in Brazil since the late 2000s. Law 8 929/1994, creates the Rural Product Certificate (CPR), a bond of mandatory registration authorised by the Central Bank.
2005-2015	Continuing reforms and emphasis on sustainability	Subsidised agricultural credit and insurance subsidies as main agricultural policy, supported by the Law of agribusiness bonds 11076/2004. Minimum prices of basic products set for smallholders through government purchases of staple foods Sugar cane ethanol ratio policy continues to apply Government purchases of staples kept in order to provide food to poor populations Institutionalisation of the National Programme for the Production and Use of Biodiesel. Current regulations of blending ranged between 6% and 15%. Law No. 12 114, 2009 - Creates the National Fund on Climate Change. Law No. 12 187, 2009 - Institutes the National Policy on Climate Change – PNMC. The law establishes the guidelines for the different national sectors, including agriculture, to contribute to the commitments to reduce GHG emissions and adapt to climate change. Decree No. 7 390, 2010 (Art. 3, item IV) established the Sectoral Plan for Mitigation and Adaptation to Climate Change for the Consolidation of a Low-Carbon Economy (ABC Plan), a strategy to consolidate mitigation and adaptation actions. Law 12 651, 2012 (Forest Code) establishes standards for protecting native vegetation in permanent preservation areas, legal reserves, restricted use, forest exploitation, and related matters. Since 2010. Sustainability emphasis on measures for adaptation and mitigation to climate change in agriculture.
2015-2022	Institutional changes and continuous emphasis on sustainability	Incorporation of the structure of the Ministry of Rural Development and Family Farming (MDA) into the into the Ministry of Agriculture and Livestock (MAPA) in 2019, then reinstated as an independent Ministry in 2023. Decree No. 10 606/2021 - Establishes the Integrated Information System of the Sectoral Plan for Consolidation of a Low-Carbon Economy in Agriculture and the Technical Committee for Monitoring the Sectoral Plan for Consolidation of a Low-Carbon Economy in Agriculture. Decree No. 10 828/2021 regulated the issuance of Rural Product Certificate (CPR). The bond was adjusted to be a market alternative for immediate and large-scale adoption of Payment for Environmental Services (PSA).
2023-present	Continuing institutional changes and more emphasis on sustainability	Relatively low support, with subsidised credit continuing as key agricultural policy tool. New competences of the 2023 MDA include family farming, agrarian reform, incorporation of several state enterprises such as CONAB (national supply), CEASA-Minas (wholesale Minas), CEAGESP (warehouse company), ANATER (extension services) and INCRA (agrarian reform). In 2023, MAPA created under its structure the Department of Reforestation and Recovery of Degraded Areas. In 2023, Decree 11 815 established the National Program for the Conversion of Degraded Pastures into Sustainable Agricultural and Forestry Production Systems. Continuous emphasis on the sustainability of rural credit and on strengthening climate change adaptation and mitigation measures.

Brazil provides a relatively low aggregate level of support and protection to agriculture, reflecting its position as a competitive exporter and price maker for a range of commodities. Brazil’s support to agricultural producers included market price support and input subsidies. Market price support (MPS) gradually disappeared from 2013-21, and PSE was dominated by preferential credit interest rates and insurance subsidies. In recent years, the share of MPS has increased alongside budgetary support (Figure 6.7).

References

[5] Anderson, K. and A. Valdes (2007), Distortions to Agricultural Incentives in Latin America, World Bank Group, Washington, DC, http://documents.worldbank.org/curated/en/518211468170062688/Distortions-to-agricultural-incentives-in-Latin-America.

[2] Frezal, C. and A. Deuss (2025), “Trade-related measures linked to the environmental sustainability of agriculture: A stocktake and typology”, OECD Food, Agriculture and Fisheries Papers, No. 216, OECD Publishing, Paris, https://doi.org/10.1787/ebfdca09-en.

[3] MAPA (2025), Brazil’s contribution to the Monitoring and Evaluation 2025.

[1] MAPA (2024), Plano Safra (Harvest Plan) 2024-25.

[7] OECD (2015), Innovation, Agricultural Productivity and Sustainability in Brazil, OECD Food and Agricultural Reviews, OECD Publishing, Paris, https://doi.org/10.1787/9789264237056-en.

[6] OECD (2005), OECD Review of Agricultural Policies: Brazil 2005, OECD Review of Agricultural Policies, OECD Publishing, Paris, https://doi.org/10.1787/9789264012554-en.

[4] WTO (2025), Tariff profiles.