Brazil to Stimulate Sustainable Rural Development in State of Paraiba

The Inter-American Development Bank (IDB) has approved a $70 million loan to help Brazil reduce rural poverty in the State of Paraíba. The project will focus on boosting food security and climate adaptation among the rural population. This is the fourth individual operation under a conditional credit line for investment projects.

The project, which has been approved by the IDB’s Board of Executive Directors, will drive more widespread uptake by Paraíba’s family farmers of farming technologies for adapting to and mitigating climate change. This initiative will also make farming activities more inclusive for women, youth, traditional communities and people with disabilities.

Additionally, the operation will improve the environmental conditions in rural communities and their surroundings.

The loan will have a positive impact on approximately 60,000 farming families, or 48% of all farming families in the state. Ultimately, the project is expected to reduce poverty or extreme poverty by 30% and increase the diversity of direct beneficiaries’ basic diet by 45%. It will also boost agricultural production and reduce greenhouse gas emissions.

In 2017, there were over 160,000 farms in Paraíba, of which 76.9% were family farms. Around 64% of the state’s population experiences food insecurity. Factors exacerbating the challenges that family farms face include climate change, environmental degradation, difficulty accessing financial resources and knowledge, poor integration into value chains and uncertainties related to land tenure.

The IDB loan will be disbursed over the course of 6 years and has a 7-year grace period and a 23.5-year repayment term. The project includes $10 million in cofinancing from the International Fund for Agricultural Development and an additional contribution of $35 million from the Government of the State of Paraíba.