Posted by tthomas
1 March 2021The Inga Systems project is acting as a showcase, encouraging other producers in the region to implement silvopastoral systems, largely due to the growth in income farmers are experiencing from the increased milk production these systems provide. Thanks to the scaling fund from the University of Exeterâs Global Research Translation Award and new funding from FUNBIOâs REM-Mato Grosso Programme, Instituto Ouro Verde is able to expand their microcredit scheme to enable more farmers to benefit.
IOVâs microcredit initiative âBanco Raizâ is offering individual and group credit. For farmers, there are three option amounts: R$ 5,000, R$ 10,000 and R$ 15,000. For groups, which can be formal or informal collectives, the limit is up to R$ 50,000. The process of applying for microcredit has been revised to enable those who have never accessed credit before the chance to apply by creating personalised and flexible repayment plans.
The use of credit has to be related to productive aspects, and can be used to purchase equipment, vehicles to take production to fairs and other spaces, sales stalls, etc. Resources should always relate to agroecological practices and sustainable use of forests.
Previously, the technical advice provided by IOV to farmers was not included in the credit, and instead supported through other projects. This is now included in the loan instalments, which will have interest of approximately 2% per month. This figure has been widely discussed with rural communities in a transparent manner and is fundamental for the community management of the initiative.
IOV is working on changing their business model to become less dependent on external funding and charitable donations, seeking to expand the microcredit scheme and support the commercialisation of family farming products. It is hoped these actions will lead to long-term financial sustainability and expansion of the impacts arising from increased performance.
Expanding the microcredit programme has numerous benefits for individuals, communities and biodiversity:
12 municipalities will benefit, supporting more than 2,480 projects, stimulating and supporting the Amazon Portal Seed Collectors Network, restoring 3,000 hectares of Permanent Protection Areas, supporting the commercialisation of R$ 45 million in family farming products over a nine-year period and providing quality food to an estimated audience of 150,000 people.