Acquiring land is not always a simple task. Obtaining the financial means to buy and parcel out the land can be the biggest challenge. Rural property can be financed through various state and private financial intermediaries.

This page explains how to receive credit through Terra Brasil, the steps involved in obtaining financing and all aspects of the technical project. Have fun reading!

How does Terra Brasil's funding for rural areas work?

Rural financing for land acquisition is a way for rural workers to acquire their own land in order to become independent.

The Brazilian law that established the Agrarian Reform Land Fund - Banco da Terra - is responsible for this type of rural financing.

This fund set up the National Land Credit Programme Terra Brasil.

Terra Brasil is a set of proposals for urbanisation and rural housing. It complements agrarian reform, facilitated by land credit.

Terra Brasil should consider measures to alleviate rural poverty and improve farmers' lives based on access to land.

This ensures self-consumption and the commercialisation of surplus agricultural production.

Who can provide rural financing for land purchases?

Applications for rural financing for land acquisition can be made by:

• Non-rural owners, preferably salaried employees, partners, squatters and tenants. All candidates must have at least five years' experience in rural activities;
• Farmers whose properties do not exceed the size of a family farm. The property must be unable to generate adequate income to feed their families.

According to the Land Statute, the size of a family's property varies according to location and occupation.

All applicants for rural financing for land acquisition must be between the ages of 18 and 70.

However, 16 to 17-year-olds are also eligible to apply for funding. This requires emancipation and registration with the Civil Registry of Natural Persons.

Experience with rural activities can be demonstrated by:

• 5 years for people aged between 20 and 70;
• 2 years for those aged between 16 and 19.

In the case of younger farmers, this proof can consist of membership of a family farming operation. It is also acceptable to be enrolled in a technical school or Family Alternance Training Centres.

The trial period consists of work carried out in rural activities up to the date of the request for funds from Terra Brasil.

The state administrator is responsible for the corresponding document and template. They must be based on the intelligence of the Cnis (National Register of Social Information).

You also need a valid DAP (Declaration of Aptitude to Pronaf) or another type of registration as a family farmer.

Employees and rural workers are not obliged to present DAP.

Who is ineligible for funding?

According to the Terra Brasil Manual, people who want rural finance to buy land cannot:

• Being a civil servant;
• Have been settled as a result of agrarian reform;
• Have participated in a programme financed by the Agrarian Reform Land Fund;
• And to have owned a rural property larger than a family property in the last three years.

In the case of inheritance, the producer cannot be the purchaser or holder of a right of action or inheritance over rural property.

There is an exception when it comes to the acquisition of rural land by co-heirs as a result of shared inheritance.

Financing criteria for rural land purchases

Terra Brasil has three sources of funding:

1. PNCF Social: operates in the North and in the municipalities of the Northeast Development Superintendence. It is valid for people registered with Cadnico (Single Registry for Social Programmes);
2. PNCF Mais: operates in all areas, with the exception of municipalities under the jurisdiction of the Northeast Development Superintendence;
3. PNCF Entrepreneur: operates in all regions and according to the rules specified with the Financial Agents who choose to operate this line.

The funding lines cover the following key elements:

1. SAT (Land Acquisition Subproject): financing contract for the acquisition of rural property with repayable resources from the Land and Agrarian Reform Fund;
2. SIC (Community Investment Subproject): basic and productive infrastructure projects carried out by associations of beneficiaries of Land Credit with non-reimbursable resources from the Subprogramme to Combat Rural Poverty.
3. They must be transferred by means of a transfer contract with the PNCF's own Social Financing line, accessible in the municipalities of the Northeast Development Superintendence.
4. SIB (Fundamental Investment Subprojects): basic and productive infrastructure projects carried out by beneficiaries with reimbursable resources from the Land and Agrarian Reform Fund, as stipulated in the SAT financing contract.

Online loan in 5 minutes: How do I get approved?

Conclusion

Various rules govern the obtaining of rural finance for land acquisition. It is aimed at a specific public: individuals with little or no land.

You must be aware that the amount financed must be repaid and you must pay attention to the completion of the project.