Since 2020, MST has received financial market contributions through grassroots funding for family farming
Since 2020, MST (Movement of Landless Rural Workers) has received contributions from the financial market through Finapop (Popular Funding for Family Farming). In this way, the program ensures that small farmers, such as those working in the Ministry of Agriculture and Livestock, are supported in financing organic food production.
According to the agronomist and coordinator of Finapop, Ana Tira, in an interview with the UOL portal, Finapop is a company “formed from the will of a group of investors and food-producing cooperatives, which carries out impact investments in the areas of agrarian reform” .
How did Venapop originate?
Finapop grew out of the initiative of a group of investors who drafted a CRA (Certificate of Agricultural Business Receivables) with the aim of contributing to the installation of a slaughterhouse in the MST Cooperative.
Thus, the partnership with companies such as Grupo Gaia has, at first, changed the initiative, “structuring the different investment methods for the realization of CRA, from which 7 cooperatives have benefited,” explained Terra.
In this way, the project expanded and entered into partnerships with many other companies, bringing the total investment projects to 59 projects in 48 institutions.
How does Finapop invest in MST work?
The principle of Finapop is to be a win-win financing for both investors and those who receive the investment, like MST. In this way, Finapop works on three fronts:
- fundraising with the help of investors;
- Rehabilitation of projects with cooperatives;
- Investment control.
“For farmers, the resource is used by various methods, in order to pay for ecological agro-food production, ensure mechanization infrastructure and working capital to purchase raw materials,” Terra explained to the UOL portal.
Who can invest in Finapop?
Currently, the investments already add up to R$42 million. It is possible to invest in lines such as CAPEX, productive investments and working capital. The initial investment amount is R$100.
“At the moment, for example, we have an investment made by GAIA to purchase a grain vacuum packaging machine in a cooperative in São Paulo. In this investment, GAIA invests resources and the cooperative guarantees its stock and machinery. Within three years, the money invested is returned,” said Tira. .
According to the Finapop coordinator, funding is an opportunity to make a positive impact. For Terra, “Finapop contributes to enhancing the Economie On the basis of preserving the environment and overcoming social inequalities, through the production of healthy food led by cooperatives.”
Photo: Joa Souza / shutterstock.com