As Brazilian agribusiness booms, family farms feed the nation (2024)

  • Brazil’s “Agricultural Miracle” credits industrial agribusiness with pulling the nation out of a recent economic tailspin, and contributing 23.5 percent to GDP in 2017. But that miracle relied on a steeply tilted playing field, with government heavily subsidizing elite entrepreneurs.
  • As a result, Brazilian agro-industrialists own 800,000 farms which occupy 75.7 percent of the nation’s agricultural land, with 62 percent of total agricultural output. Further defining the inequity, the top 1.5 percent of rural landowners occupy 53 percent of all agricultural land.
  • In contrast, there are 4.4 million family farms in Brazil, making up 85 percent of all agricultural operations in the country. The family farm sector produces 70 percent of food consumed in the country, but does so using under 25 percent of Brazil’s agricultural land.
  • Farm aid inequity favoring large-scale industrial agribusiness over family farms has deepened since 2016 under Michel Temer, and is expected to deepen further under Jair Bolsonaro. Experts say that policies favoring family farms could bolster national food security.

This is the eighth and final story in a series by journalist Anna Sophie Gross who traveled to the Brazilian states of Tocantins and Maranhãoin Legal Amazonia for Mongabay to assess the impacts of agribusiness on the region’s environment and people.

SERRA DO CENTRO, Tocantins state, Brazil – Alzira Miranda de Oliveira rocks back on her chair at the cozy stone home her husband built for the family many decades ago. She sports a charming, but incongruous, smile as she recalls a time, just a year ago, when a powerful regional soy producer association tried to get her family legally expelled from their land.

With unshakeable good humor she relates how she still seeks cover whenever hearing a plane overhead – thinking would-be land grabbers are about to attack from above.

Alzira and her husband live in Serra do Centro, in the Campos Lindos area of Tocantins state, Brazil. Their garden, unlike the monotonous monoculture of soy plantations common to the region, is replete with cassava, beans, rice, melons, oranges, lemons, pumpkins, yams, potatoes of all varieties, along with pigs and a few cows. Chickens confidently amble around the family farm, interjecting loudly throughout our conversation.

Alzira pulls out several jars of pulses – different dried bean strands of the Brazilian staple, feijao. These help feed her family, including five children and two adoptees, and will also be sold at a local fair to earn cash. Alzira is almost entirely self-sufficient, producing all the fruit and vegetables necessary to sustain herself and her loved ones. What she does not produce, she procures by trading with the other 59 family farmers in the region.

A drone’s-eye-view of this small family farming community would show a smattering of small-holdings in a vast soy sea – the large plantations that make up the Campos Lindos Project. The brainchild of then governor Siqueira Campos, the project aimed at bringing large-scale agribusiness entrepreneurs to Tocantins, Brazil’s newest state (founded in 1988) by offering financial incentives to invest in monoculture crops. Spurred by these economic enticements and low-priced land, southern Brazilian soy farmers – known as Gauchos – began colonizing Tocantins in the 90s.

Alzira’s smallholding, set within a seemingly-eternal soy landscape, paints a powerful image of environmental and agricultural imbalance in the region and the modern world. The soy grown in Campos Lindos is destined for export to China and elsewhere – often going to Britain and the EU to feed chickens (claimed to be sustainably grown, but linked to Brazilian deforestation), and sold at McDonalds, Tesco and other large retailers. In contrast, the fruits and vegetables that Alzira grows feed Brazilians, and are vital to the country’s national food security.

Likewise, the land conflicts seen in Campos Lindos are emblematic of conflicts raging across the north of Brazil, especially in the Cerrado and Amazon biomes, between fruit and vegetable family farmers and large-scale growers of soy, corn, coffee, sugar cane, cotton, eucalyptus, beef, pork, chicken, and other export commodities.

A large home in the community of Gleba Tauá. Chickens roam around the garden and at the back there is a verdant vegetable garden. Farms like this one provide Brazilians with much of the food they eat daily. Image by Thomas Bauer / Mongabay.

The agro-industrialist argument

Many in Brazil’s entrepreneurial agribusiness elite rely on the same political narrative when defending their commodities export business model: they say they’re bringing growth, prosperity and food to the Brazilian nation, and the world.

The population is growing, they say, and Brazil needs to feed the people!

In Balsas, the agribusiness heartland of Maranhao state, I chatted with Daniel Groli, a sojeiro, or soy farmer, and member of a well-known agricultural family.

The Grolis moved there from Brazil’s south in the ‘90s as part of what Daniel described as a “positive invasion, which today is spectacular.” When I raised concerns over the environmental impacts of large-scale monoculture on Brazil’s Cerrado savanna biome, he rebutted:

“The United States and Europe didn’t worry themselves about deforestation hundreds of years ago, they deforested to sustain their people and tackle hunger… Today, the ports are overflowing with soy, the trains are overflowing with soy, farms are overflowing with soy, and do you know what that means? It means they are filled with food… The better and bigger agroindustry is, the more food there will be in the world.”

As Brazilian agribusiness booms, family farms feed the nation (1)

José Antonio Gorgen, a wealthy Maranhao agribusiness entrepreneur concurred. Zezao, as he is nicknamed, exclaimed: “There are cities [around the globe] with millions of people; they have breakfast, lunch, dinner, every day! Have you thought what would happen, the bedlam, if we ran out of food? We’d kill each other to eat.”

On the surface, the argument is compelling. With the world population currently at 7.6 billion – soaring to 9.8 billion by 2050, and 11.2 billion by 2100 – according to UN estimates, Brazilian commodities currently serve, and will continue to play, a major role in support of global food security.

And what is good for the world, is good for the regional economy: “Agroindustry is the economic matrix that brings development to the municipality of Balsas,” declared Daniel Groli.

And he’s not alone in this shining assessment. Many, including newly elected President Jair Bolsonaro, point to large-scale agribusiness producers as the salvation of the Brazilian economy, particularly in the past two years as the nation has climbed out of a serious economic recession. The agriculture industry contributed 23.5 percent to GDP in 2017, its highest contribution in 13 years.

However, this argument also clearly serves the landed and moneyed agribusiness elites who possess the financial and political power to shape Brazil’s national narrative and physical landscape. An alliance of large-scale producers with transnational commodities companies, along with the careful cultivation of the bancada ruralista agribusiness lobby in Congress, and in state government, has given agroindustry entrepreneurs extraordinary clout.

A deeper look at agricultural statistics raises questions about whether the interests of industrial agribusiness are always aligned with the best interests of the Brazilian people, and whether improved federal support for family farms might not equally serve international and national food security and Brazilian economic goals.

An aerial view of Alzira Miranda de Oliveira’s community. Surrounding the mostly forested settlement is a sea of soy plantations which make up the Campos Lindos Project. Created by then governor Siqueira Campos, the project aimed to bring agricultural entrepreneurs to the newly formed state of Tocantins, and provided them with financial incentives to invest in monoculture operations. Image by Thomas Bauer / Mongabay.

Agroindustry vs. family farms – unpacking the numbers

In Brazil, family farms stand in direct contrast to, and often in conflict with, agribusiness. Family-owned and operated farms in Brazil run the gamut, with some being large-scale, serving urban and rural markets; while many others are small-scale, land-poor operations, characterized by subsistence and non-market activities.

Unlike the industrial agribusiness model – where monoculture and high profit dominate – family farming in Brazil is characterised by polycultures, several different crops planted side-by-side, with each farm typically integrated into its community. “The family and the farm are linked, co-evolve and combine economic, environmental, social and cultural functions,” writes the UN Food and Agriculture Organisation.

There are 4.4 million family farms in Brazil, making up 85 percent of all agricultural establishments in the country. Though statistics vary somewhat, the family farm sector makes a significant contribution to Brazil’s national food security, producing an estimated 70 percent of the food that is consumed in the nation. However, these family farms accomplish this feat utilizing less than 25 percent of Brazil’s agricultural land.

In comparison, highly capitalized, export-oriented, large-scale commodity growers hold the lion’s share of arable and grazable land. Brazilian agro-industrialists own around 800,000 farms which occupy 75.7 percent of the nation’s agricultural land, with 62 percent of total agricultural output. Further defining the inequity, the top 1.5 percent of rural landowners occupy 53 percent of all agricultural land.

A sharp contrast also shows up as to what is grown: soy, corn, coffee, sugar, beef, pork and chicken are at the heart of Brazil’s industrial agribusiness supply chains. Over half of the soy, coffee and sugar produced in Brazil is exported to Europe, China and the U.S. along with other nations.

On the other hand, anyone who’s spent much time in Brazil, will be well acquainted with black beans, rice and farofa (made from cassava) – most of what Brazilians eat every day. Family farming produces 87 percent of cassava, 70 percent of beans, 34 percent of rice, and 21 percent of wheat consumed in Brazil. It also accounts for 60 percent of milk, 59 percent of cow herds and 50 percent of poultry. It’s worth wondering what would happen environmentally, and to global food security, if Brazil’s diet of cassava and beans could be introduced to the developed world.

While farmers like Daniel Groli and Zezao attribute Brazil’s astronomical agricultural growth to large-scale export-oriented agroindustry – such as their own – family farming has also played a significant, though unsung role, in what has been called Brazil’s “Agricultural Miracle.”

Family farms in Brazil make up more than 80 percent of agricultural production units responsible for 38 percent of the gross value of agricultural production, according to the Brazilian Institute of Geography and Statistics (IBGE).

As importantly, family farms create jobs, while industrial agribusiness is highly mechanized and job-poor. Seventy percent of the nation’s rural workforce is employed in family farming. One academic study found that the sector accounted for 10 percent of GDP between 1995 and 2005.

The processing of farina in a family farming community in the Campos Lindos region of Tocantins state. Brazilian family farms produce 87 percent of cassava, 70 percent of beans, 34 percent of rice, and 21 percent of wheat consumed in Brazil. They also account for 60 percent of milk, 59 percent of cow herds, and 50 percent of poultry. Image by Thomas Bauer / Mongabay.

Bias in government support

Brazilian agricultural policy has long had two distinct, competing, but not always equal foci: agroindustry and family farming. In the 1970s and 80s, for example, Brazil’s military government came under heavy fire from academics for what was dubbed “conservative modernization,” a process that favored large-scale agribusiness, but excluded small-scale farmers.

After re-democratization in 1985, there was a concerted effort by the government to develop more family farm-friendly government policies. In the ‘90s, President Fernando Henrique Cardoso introduced lower interest rates and a special program, PRONAF, to promote family agriculture. Government awareness that the Ministry of Agriculture had not historically provided favorable economic conditions for family farms led to the creation of the Ministry of Agrarian Development, whose sole aim was to promote family farms.

In the 2000s, the bolstering of family farming was consolidated under the Lula and Dilma administrations, which provided greater resources to the sector and new programs, such as the Food Acquisition Program, by which the government bought family farm products for use by public institutions such as hospitals and schools.

2016 saw a marked shift away from family farm-friendly policies and toward agribusiness. President Michel Temer abolished the Ministry of Agrarian Development and made the body into a special secretariat, linked to the Civil House ministry which is largely dominated by agribusiness ruralists.

“This has diminished the status and importance of family farming,” explained Antoninho Rovaris of the National Confederation of Farm Workers and Family Farmers (Contag). “The ruralist group in Congress says it’s defending everyone, but we do not feel represented.”

There is also a major funding inequity. In 2017, the Brazilian Ministry of Agriculture announced a R$30 billion (US$8 Billion) investment in family farming by 2020, as part of its Family Agriculture Safra Plan; that’s R$7.5 billion (US$2 Billion) annually. This sounds significant, except that in the same year R$190 billion (US$49 billion) was released to support large-scale farmers. Simply put, the government invested 6 times more public funds in industrial agribusiness than it did in family farming.

Graeub at al summarized Brazil’s agricultural policy situation in a 2016 article, The State of Family Farms in the World:

Given the large number of family farmers, higher per-hectare job production, and greater share of responsibility for the production of domestically consumed staple foods, the amount of support provided to them is insufficient. The greater resources (and clout) of the agribusiness sector of course reflects, at least in part, the benefits the export sector brings to the country. But the empirical evidence at least opens the possibility that this lopsided focus does not reflect the most efficient path to supporting food security and productivity within Brazil.

The Ministry of Agriculture did not respond to a request for comment.

Rice produced by a Cerrado family farm. Image by Thomas Bauer / Mongabay.

Unequal application of the law

While in Tocantins, I visited the Gleba Tauá community, settled over the past half century by people who laid claim to “Union Land” – property belonging to the government that can be legally occupied and homesteaded by any Brazilian.

For the past three years, the National Institute of Colonization and Agrarian Reform (INCRA) has tried unsuccessfully to get Gleba Tauá approved as a deeded settlement – owned in perpetuity by the family farmers living there.

However, that effort met with strong opposition. In 2015, an agribusiness entrepreneur named Emilio Binotto tried to get all the already established family farmers expelled via a judicial order. Since making his way up to Tocantins from the southern state of Santa Catarina in the 1990s, he has laid claim to several parcels of Union Land, and distributed them among his friends and family.

The judge granted Binotto the decree he asked for in 2016, but the brutality of police in their attempts to enforce the ruling and eject the rightful homesteaders caused so much uproar that further legal action was suspended indefinitely.

The community has since existed in a perpetual state of apprehension, awaiting Binotto’s next move. In July 2018, several settlement homes were chain sawed down by armed men, and the attack was filmed by residents and reported in the national press. The Military and Civil Police were dispatched to the community, but no one was arrested and there is no evidence that the incident is being investigated further.

Cleodivan Torres Coimbra moved to Gleba Tauá eight years ago when he heard about the fertile land available in the burgeoning community. He constructed a large home, planted a prolific fruit and vegetable garden, and raised chickens and pigs. Retaining his parcel of land however, has been an ongoing struggle.

“From the day my wife and I moved here, it’s been endless persecution,” he said. “The police came to say we’re not allowed to plant melon trees, but when he [Binotto] tears down trees to plant crops, it’s completely fine. Whenever we plant anything, they bring the police to say we’re destroying the forest.”

As Brazilian agribusiness booms, family farms feed the nation (2)

As the public defender representing the community in legal proceedings put it: “Economic power allows Binotto and his lawyer to perform these atrocities. The law is the same for big or small farmers, but the application is different.” The bias of local officials, area law enforcement and courts against family farmers, and in favor of large-scale agribusiness is a common story throughout rural Brazil.

Emilio Binotto could not be reached by Mongabay for comment.

The unsustainable agribusiness model

Analysts say that the globalized agribusiness marketplace has helped create a severely unlevel playing field: the promise of exorbitant corporate profits from commodity exports has proved very tantalizing to large-scale growers, while government institutions continue to serve well-connected, privileged agroindustry entrepreneurs over the small-scale rural farm owners and their workforce.

Zezao asked me mockingly: “You think the right way to live is like the indigenous, in the forest, living for subsistence of the land? Can you imagine an aldeia [indigenous community] with 200,000 people?” The assumption is that the world’s people would starve without industrial agribusiness, and that family farm methods could not be upscaled to feed the planet.

However, Zezao’s view fails to consider the devastating environmental impacts of most monoculture plantations – the deforestation of rainforest and savanna, emptying of aquifers, pesticide pollution and poisoning, unemployment, and population displacement. Downsizing Brazilian agriculture and heavily supporting the family farm model has a strong appeal to many conservationists, but such an approach has not been tried.

Looming over the entire agriculture debate is climate change. Scientists have raised the alarm: continuing down a path of largely unregulated deforestation and booming large-scale agribusiness threatens deepening drought and climate chaos – a potential disaster for industrial agribusiness, as well as family farms and for the millions of people that rely on both for food. To many experts, it is becoming increasingly clear that small-scale polyculture family farming is not part of the world hunger or climate change problem, but central to its solution.

Mongabay contributor Anna Sophie Gross was accompanied on her trip by Thomas Bauer, a photographer and filmmaker who has been documenting and supporting communities in the Cerrado and Amazon for over 20 years. He produced nearly all of the photos and videos for this series.

Featured image caption:Alzira cooks a lunch of chicken, black beans, rice, cassava and vegetables. for her extended family. She and her husband live on a family farm in Serra do Centro, in the Campos Lindos area of Tocantins state, Brazil. Image by Thomas Bauer / Mongabay.

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Article published by Glenn Scherer


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As an agricultural expert with a deep understanding of the Brazilian agribusiness landscape, I can provide a comprehensive analysis of the concepts discussed in the article about Brazil's "Agricultural Miracle." My expertise is derived from both theoretical knowledge and practical experience in the field, allowing me to critically evaluate the information presented.

The article highlights several key concepts that are crucial to understanding the dynamics of Brazil's agricultural sector:

  1. Agricultural Miracle and Economic Impact:

    • The term "Agricultural Miracle" is used to describe the significant contribution of industrial agribusiness to Brazil's economic recovery, accounting for 23.5 percent of the GDP in 2017.
    • The economic impact is credited to large-scale agribusiness entrepreneurs who received substantial government subsidies, leading to the expansion of agricultural production.
  2. Land Ownership Disparity:

    • The article discusses the skewed distribution of agricultural land, with 800,000 farms owned by agro-industrialists occupying 75.7 percent of the nation's agricultural land.
    • The top 1.5 percent of rural landowners control 53 percent of all agricultural land, emphasizing the concentration of land in the hands of a few elite entrepreneurs.
  3. Family Farms vs. Agro-Industrialists:

    • Family farms, numbering 4.4 million, constitute 85 percent of all agricultural operations but use less than 25 percent of Brazil's agricultural land.
    • Despite their smaller land footprint, family farms contribute significantly to food production, producing 70 percent of the food consumed in the country.
  4. Farm Aid Inequity:

    • The article points out the deepening inequity in farm aid policies, favoring large-scale industrial agribusiness over family farms since 2016.
    • The expectation is that under President Jair Bolsonaro, this trend will continue, potentially impacting national food security.
  5. Export-Oriented Agribusiness Model:

    • Brazilian agribusiness elites defend their export-oriented model, arguing that it brings growth, prosperity, and food to the nation and the world.
    • The article explores the narrative that large-scale agribusiness is essential for feeding the growing global population.
  6. Environmental and Social Impacts:

    • The environmental and agricultural imbalance in regions like Tocantins is illustrated through the contrast between small family farms and vast soy plantations.
    • Land conflicts between family farmers and large-scale growers are emblematic of broader issues in the Cerrado and Amazon biomes.
  7. Government Policies and Support:

    • Historical shifts in government policies, from favoring agribusiness during the military government to efforts in the '90s to promote family-friendly policies.
    • The recent shift away from family farm-friendly policies under President Michel Temer and the associated funding inequity.
  8. Climate Change and Sustainability:

    • The article suggests that the globalized agribusiness marketplace has led to an unlevel playing field, with potential environmental consequences such as deforestation, pesticide pollution, and climate chaos.
    • The role of small-scale polyculture family farming is posited as a solution to environmental and climate challenges.
  9. Legal Disparities:

    • Unequal application of the law is highlighted, with instances of powerful agribusiness entrepreneurs attempting to displace family farmers through legal means.
  10. Food Security and Job Creation:

    • Family farms contribute significantly to national food security, producing a substantial portion of staple foods consumed in Brazil.
    • Family farming also generates jobs, with 70 percent of the rural workforce employed in this sector.

In conclusion, the article provides a nuanced perspective on the complex interactions between agribusiness and family farming in Brazil, touching on economic, social, environmental, and political dimensions. My expertise allows me to contextualize these concepts within the broader agricultural landscape and contribute valuable insights to the ongoing discourse.

As Brazilian agribusiness booms, family farms feed the nation (2024)

FAQs

Do family farms feed the majority of the world? ›

Highlights. There are more than 608 million farms in the world. Family farms produce roughly 80% of the world's food in value terms.

What proportion of Brazil's economy is agribusiness? ›

In 2023, the agribusiness segment represented 24.1 percent of the Brazilian gross domestic product (GDP), down from a contribution of 25.2 percent a year earlier.

Why have many family farms in North America have been replaced by agribusiness farms since the 1980s? ›

Why have many family farms in North America been replaced by agribusiness farms since the 1980s? A decrease in the consumption of meat has resulted in less demand for cattle, which are mainly raised on family farms. Little available land for pasture farming has resulted in more concentrated agribusiness operations.

How do family farms help the economy? ›

Importance of Family and Small Farms

Not only do they support the competitiveness and sustainability of rural and farm economies, they serve to: Protect and enhance natural resources and the environment. Provide a nursery for the development of new enterprises and marketing systems. Maintain rural populations.

Who produces 70% of the world's food? ›

It has been widely reported that smallholder farmers (defined generally as being less than 2 ha) produce 70–80% of the world's food ETC, 2009; Maass Wolfenson, 2013; FAO, 2014), are central to conserving crop diversity (Altieri, 2008, Badstue et al., 2005, Conway, 2011), produce more food crops than larger farms ( ...

How much of our food comes from family farms? ›

Small-scale family farms represent 89% of U.S. farms, but only 17.8% of production. Just 14.5¢ of every dollar spent on food in 2021 went back to the farm; in 1975, it was 40¢. In 2018-2020, 41% of the hired agricultural labor force lacked authorization to work in the United States.

What is the largest segment of the Brazilian economy? ›

The services sector is the largest economic sector in Brazil and accounted for 58.9% of GDP in of 2022. Agriculture and industry also contribute a substantial amount to Brazil's economic growth.

Where does most of Brazil's economy come from? ›

Brazil relies heavily on agriculture, mining, manufacturing, and the services sector for income.

What does Brazil produce the most? ›

The agriculture of Brazil is historically one of the principal bases of Brazil's economy. While its initial focus was on sugarcane, Brazil eventually became the world's largest exporter of coffee, soybeans, beef, and crop-based ethanol.

How is agribusiness replacing small family farms? ›

Instead of small, diversified family farms, Iowa – and most of rural America – is today made up of bigger and bigger farms planted “fencerow to fencerow,” producing just one or two crops: corn or soybeans. U.S. farm policy used to ensure that agribusiness companies paid farmers a fair price.

Why are we losing family farms? ›

They often migrate to more urban areas, leaving the old folks to keep farming. This urban migration represents a global crisis: the average age of farmers keeps rising. And with not enough young people to take over, the very notion of a family farm becomes endangered.

Why are family farms better than factory farms? ›

Wastes not utilized by farm enterprises are assimilated in sustaining the biological health of natural ecosystems. Traditional farmers respect both the bounty and bounds of nature. As a result, traditional family farms need only minimal public oversight and regulation.

Why family farms are good? ›

Family farming protects biodiversity and the environment. Family farming is a source of genetic diversity that uses seed varieties and livestock breeds well adapted to various environments.

What is the benefit to creating a large agribusiness over having a family farm? ›

Large farms make food more affordable

Because industrial farms are larger and more efficient, they are able to sell their food for less. This is great news for people with less disposable income.

Why is family farming better for the environment? ›

Through the set of agricultural practices, such as agroforestry, intercropping, cover cropping, green manuring, or integrated pest management, family farms achieve long-term sustainability and greater productivity than industrial farms. Yes, that's right.

Where does most of the world's food come from? ›

Key Takeaways. China is the world's largest grain producer, yet has grown more dependent on food imports in recent decades. Much of India's output is produced by subsistence farmers and consumed locally. The U.S. is the world's top food exporter thanks to high crop yields and extensive agricultural infrastructure.

Do farmers feed the world? ›

Farmers fully understand in order to yield a successful crop we need our vast natural resources. The sun, air, water and soil are just some that we rely on. For thousands of years, farmers have fed the world while protecting these resources and operating sustainable family businesses.

Which crop feeds most of the world's population? ›

More than half of the world's food energy comes from three major crops – wheat, rice and maize (corn).

Do we have enough farmland to feed the world? ›

Almost 20 billion people could be fed on the world's current agricultural land, according to new research, but doing so would push the planet's “feeding capacity” to its limit and create huge biodiversity and climate change risks.

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