Brazil Pushes Land Reform to Boost Small Farmers Amid Economic Pressures

Brazil’s government, under President Luiz Inácio Lula da Silva, has launched a major push to accelerate agrarian reform, aiming to settle 295,000 families by the end of 2026.

This initiative, announced at a major agrarian reform event in early 2025, seeks to redistribute land to small producers and family farmers through the new Terra da Gente program.

Officials say the program aims to use a wide range of legal mechanisms to obtain land. These include expropriation of unproductive areas, regularization of public lands, and, for the first time, transfer of ownership from major debtors to the state.

The government has also opened negotiations with banks, state-run companies, and state governments to swap rural properties for debt relief. The plan sets annual targets: 73,200 families will be settled in 2024, 81,000 in 2025, and 90,500 in 2026.

In 2023, authorities settled 50,900 families, with nearly half receiving vacant plots in existing settlements. President Lula’s administration says these numbers represent a minimum threshold, with potential for higher figures if states and public institutions contribute more land.

The government has already delivered 12,297 plots in 138 settlements across 24 states this year. These settlements include areas like Quilombo Campo Grande, a territory expropriated after 27 years of occupation and repeated evictions.

The government has allocated R$1.6 billion for installation credit in 2025, supporting new settlers with housing and start-up costs. Despite these efforts, critics point to the slow pace and limited budget.

The 2025 budget for agrarian reform can settle only about 4,000 families, far below demand. Over 100,000 families remain on waiting lists, many for nearly a decade.

Brazil’s Land Reform Efforts Confront Slow Progress

The government’s slow progress comes as food prices keep rising in Brazil, driven by agribusiness speculation and export-focused production. Many see agrarian reform as a way to lower food costs, create jobs, and improve food quality for Brazilians, who increasingly rely on processed foods.

The debate over land reform in Brazil has always pitted large landowners and agribusiness interests against small farmers and rural workers. The Lula administration frames the current push as a way to decentralize land ownership and strengthen local economies.

The government’s approach blends redistribution through expropriation with market-based mechanisms, such as reimbursing landowners at market rates. Observers note that the government’s strategy reflects a pragmatic, mercantile approach.

By using land from debtors and negotiating with banks, the administration tries to avoid lengthy legal battles and reduce costs. However, the reliance on public and market mechanisms means progress remains slow and subject to budget constraints.

The outcome of Brazil’s land reform will shape the country’s rural economy and food system. For now, the government faces the challenge of meeting ambitious targets with limited resources, while balancing the interests of small farmers, agribusiness, and the broader economy.