Brazilian government aiming for 50% of biodiesel purchases to come from family farmers

In Brazil, Informa Araguaia reports the federal government will nationalize the rules of the Social Biofuel Seal, aiming to ensure that 50% of purchases of this product come from family farming. Among the changes, the nationalization of production stands out, especially in the states of the North and Northeast Regions, including semi-arid areas, such as the Jequitinhonha Valley in Minas Gerais.

Among the initiatives to stimulate national production is the anticipation of the biodiesel blend to 14% from April, reaching 15% between 2025 and 2026, with the expectation of reaching 25% in the following years.

The increase to 14% in the mixture should boost soybean processing for biodiesel production, with a projected growth of 3.05 million metric tons, directly benefiting small farmers. Tax incentives for biofuel producers are also planned.

According to the Ministry of Mines and Energy (MME), the new text seeks more transparency and strengthens the requirements for the granting and maintenance of the seal by biofuel producers. The measure aims to take advantage of the vocations of local agriculture, improving the income and quality of life of family farmers in vulnerable regions.