The Power of Smallholders in Mato Grosso do Sul: Building Sustainability and Social Inclusion in Rural Settlements

This month, we are hosting several events in rural settlements across our region, under the banner of what we’re calling the "Caravan." In my 30 years in agribusiness, it was my first time sitting down with settlers for a roundtable discussion, and I must say, I was deeply impressed.

I admit that, influenced by a somewhat limited view and confusion over the famous social movements, I initially expected these meetings to be mostly about political and ideological debates, with groups pushing their own worldviews. The "us versus them," "rich versus poor," or "X versus Y" mindset quickly dissolved.

These farmers showed me a completely different reality: an immense drive to progress, to create wealth, and to produce—something that, I confess, filled me with renewed energy.

They shared their challenges, such as the unpredictable weather during this crop season, which severely affected both soybeans and corn, the fluctuating commodity prices, unfavorable trade terms, and above all, the difficulties in accessing financing. Without legal land regularization, they remain in a sort of limbo: too large to qualify for small-scale farmer credit (Pronaf), yet not large enough to access conventional credit lines.

They also demonstrated how they organize themselves, sharing equipment and exchanging experiences, and how they manage to stay informed. Over the 25 years of these settlements’ existence, a kind of "natural selection" occurred, differentiating those who sought land from those who truly wished to be farmers. However, this creates its own issues as many have expanded their holdings only on paper.

Mato Grosso do Sul, with its vast landmass—larger than many neighboring agricultural countries—is among Brazil's leading food producers. According to the National Institute for Colonization and Agrarian Reform (INCRA), the state is home to approximately 319 rural settlements, where over 28,000 families live and work. These farmers are a vital force for the state's development and play an essential role in ensuring the nation's food security.

This experience revealed the potential of these small farmers in the wider agribusiness ecosystem. Far from being mere recipients of aid, they are eager participants in the agricultural sector, seeking the tools and opportunities to contribute meaningfully. Their strength lies in their resilience, their capacity to adapt, and their will to overcome challenges. Rural settlements like these, driven by such farmers, are not just a part of our agricultural landscape—they are a pillar of sustainability and social inclusion, helping shape the future of agribusiness in Brazil.

In our area of operation, we have 7,658 farming families, yet we are familiar with only 4,595 of them. Most of those we haven't connected with likely reside in these settlements, as our knowledge of farms smaller than 100 hectares is less than 20%, as shown in the table above.

Getting to know all the farmers in our area is one of our main goals, which is why we’ve started organizing these caravans in various settlements. The aim is to bring solutions and increase our contact and interactions with these groups of farmers.

At the Tamakavi Settlement in Itaquiraí, we had the opportunity to connect directly with these small farmers (with an average of 20 hectares) and dispel the myth that technology is only for large-scale producers.

We hosted a productive roundtable discussion, demonstrating that technology is within everyone's reach. We also presented the benefits of our consortiums and financing options, along with the full support and after-sales solutions we offer.

The Caravan we are organizing this month across various settlements in our area is part of our effort to make technology accessible to all farmers, regardless of the size of their properties.

This article highlights the challenges and opportunities these farmers face and how we can help them become more profitable, productive, and sustainable. Being close to them, listening to their demands, and building tailored solutions for each one is part of our work as agronomists and promoters of progress.

What Are Rural Settlements?

Rural settlements are areas designated for family farming, created through agrarian reform processes led by the government, primarily through INCRA. In these lands, families who once lived in social vulnerability have the chance to produce food, generate income, and build a new life, using agriculture as their foundation.

These initiatives aim to redistribute underutilized lands, promoting social justice and access to land for those who would otherwise be left on the margins of the productive sector. Currently, millions of Brazilians live and work in settlements, cultivating areas that were previously underused. As we mentioned earlier, in Mato Grosso do Sul, 28,000 families live in these settlements.

Economic and Social Impact

Family farming, which is the focus of rural settlements, accounts for a significant portion of the food consumed in Brazil. Data from the Agricultural Census shows that small farms are responsible for more than 70% of the food that reaches Brazilians' tables, such as beans, cassava, corn, and vegetables.

Unlike other regions, in our area, it is impressive to see that settlers produce soybeans and corn, rather than the crops mentioned above. This shows that there is no class division in food production but rather well-studied and guided agricultural aptitudes from research institutes.

Keeping these farmers in the field and offering them the right technical and financial conditions strengthens the direct impact settlements have on the greatness of Brazilian agribusiness. Besides food production, settlements generate jobs and boost the local economy.

Social Inclusion and Poverty Alleviation

One of the greatest legacies of rural settlements is their social impact. Many of these communities are made up of families who were in extreme poverty or without access to decent living conditions. With the allocation of land, these families have a real opportunity for subsistence, education, and social development.

Programs for technical assistance, training, rural credit, and basic infrastructure (such as electricity, water, and roads) are essential for these families to produce sustainably and improve their quality of life.

For us, suppliers of inputs and technology, it is crucial to think of new credit solutions and differentiated services so that these farmers can fully benefit from our technologies. This will only be possible if we are actively involved in their communities and routines.

Sustainability and Environmental Preservation

Another important aspect of rural settlements is their potential for sustainable agricultural practices. Many areas adopt agroecological techniques that balance agricultural production with environmental preservation. These practices aim to conserve soil, water, and biodiversity responsibly.

Settlers are increasingly engaged in recovering degraded areas, reforestation, and producing sustainable foods. Sustainable agriculture in settlements is an effective solution to combat hunger and poverty without depleting the natural resources for future generations.

In the settlement in question, all families preserve 20% of their land, which is concentrated in a single conservation area. It is the responsibility of all to care for, protect, and maintain this area.

Challenges and Perspectives

Despite their great potential and positive impact, rural settlements still face significant challenges. The lack of infrastructure, difficulty accessing credit, and limited technical assistance are barriers that need to be overcome. Additionally, land regularization, which guarantees settlers' legal rights to their land, remains an unresolved issue for many.

Giving land ownership to these families is crucial so they are not dependent on the State, allowing them, like all farmers, to seek financing from other sectors. In traditional agriculture, the State represents between 20% and 30% of the financing, and the participation of other sectors in funding was essential for the prosperity of agribusiness.

We would not have the agribusiness success we see today if we had only relied on state funding. It’s also important to note that state money is not free, farmers must repay these loans, even when harvests are not bountiful. "There is no free lunch."

With effective public policies and a focus on family farming, these obstacles can be transformed into opportunities. Rural settlements, with their production capacity, social inclusion, and environmental preservation, are fundamental to the development not only of Mato Grosso do Sul but also of Brazil.

Conclusion

Rural settlements in Mato Grosso do Sul represent much more than the simple redistribution of land. They are symbols of resilience, social inclusion, and sustainable development. Settled families, like those in the Tamakavi Settlement, have shown that with the right support, they can significantly contribute to the country’s economy, food security, and environmental preservation.

Strengthening rural settlements is a strategic issue for Brazil's future, ensuring that the countryside remains a place of opportunity and growth for all, rather than a battleground for ideological debates.

My reflection is that in these settlements, farmers should not and cannot rely solely on public policies. We need to stand united, without class, thought, or ideological divisions, to help these farmers become true agents of sustainable development, social inclusion, and food security in our state.