By Douglas Alencar (CFC-GS/UFPA) & Andressa Lima (CFC-GS/UFPA)
Financing through the Constitutional Development Funds, the Constitutional Fund for Financing the North (FNO) and the Constitutional Fund for Financing the Northeast (FNE), plays an important role in stimulating investment and boosting regional economies. An analysis of the temporal evolution and sectoral distribution of these resources between 2015 and 2024 reveals both the significant growth in the financing capacity of these funds and the strong concentration in traditional sectors, such as agriculture, commerce, services, and infrastructure. Although these allocations have contributed to sustaining economic dynamism in the North and Northeast regions, the data also show that credit lines aimed at sustainable and low-carbon practices still represent a marginal fraction of the total. This scenario opens up space for thinking about the integration between public financing and the promotion of regenerative agriculture, in line with the need to transition to a more resilient economy.
Graph 1: Total FNO resources (2015-2024)
Source: Own elaboration, based on data from BASA (Reports on Activities Developed and Results Obtained, 2015–2019) and MIDR (2020–2024).
Graph 1 shows the evolution of the total volume of resources from the Constitutional Fund for Financing the North (FNO) between 2015 and 2024. It can be seen that, after a relatively low level of disbursements between 2015 and 2017, with a low point in 2016 (R$ 2.3 billion), disbursements began to grow consistently. From 2018 onwards, there was a clearer upward trend, reaching R$ 7.7 billion in 2019 and exceeding the R$ 10 billion mark in 2020. The peak of the period occurred in 2021, when resources reached R$ 12.5 billion. In subsequent years, there was a slight fluctuation, with a small decline in 2022 and 2023, but without a return to pre-2020 levels. In 2024, the highest volume in the series was recorded (R$ 13.5 billion), indicating a recent expansion in credit availability. The significant growth in FNO resources, especially after 2018, highlights the expansion of financing capacity in the North region. This movement is particularly relevant when compared to the evidence of the economic viability of regenerative agriculture presented by Marques (2022), which shows how regenerative practices on small and medium-sized properties can be profitable and promote the rehabilitation of ecosystems. Thus, the expansion of FNO disbursements suggests that there is room to include specific lines aimed at regenerative agriculture, favouring producers who already have the technical and economic conditions to adopt these practices.
Graph 2: Total FNO Resources by Sector (2015-2024)
Source: Own elaboration, based on data from BASA (Reports on Activities Developed and Results Obtained, 2015–2019) and MIDR (2020–2024).
Graph 2 shows the distribution of resources from the Constitutional Fund for Financing the North (FNO) by economic sector for the period 2015 to 2024. There is a strong concentration in financing for agriculture and livestock, which received R$ 45.2 billion, corresponding to 55.8% of the total allocated. Next are the commerce and services sectors (R$ 17.6 billion; 21.7%) and infrastructure (R$ 8.0 billion; 9.8%), which together account for almost one-third of disbursements. The other sectors have a significantly smaller share ( ). Family farming accounts for R$ 5.4 billion (6.9%), and industry for R$ 3.3 billion (4.1%). Areas related to innovation, ecological transition, and emerging activities, such as low-carbon agriculture (R$ 552 million; 0.68%) and green energy (R$ 51 million; 0.06%), have a residual share of total resources. The predominance of agriculture and livestock, which accounted for 55.8% of FNO resources, reflects the centrality of the primary sector in regional credit policy. However, the almost residual share of low-carbon agriculture (0.68%) shows that innovative practices have not yet been incorporated in a significant way. Medeiros (2023) argues that regenerative agriculture has multiple possible versions and practices—from integrated systems to bio-inputs and waste recycling—many of which could be included in FNO credit lines. Therefore, the contrast between the concentration on the conventional model and the low presence of sustainable practices reinforces the need to reorient part of this financing.
Graph 3: Main Sectors Financed by the FNO (2015-2024)
Source: Own elaboration, based on data from BASA (Reports on Activities Developed and Results Obtained, 2015–2019) and MIDR (2020–2024).
Graph 3 shows the concentration of resources from the Constitutional Fund for Financing the North (FNO) in a few economic sectors. Agriculture stands out as the main destination, absorbing R$ 45.2 billion, which corresponds to 55.8% of the total disbursed in the period. In second place is the trade and services sector, with R$ 17.6 billion (21.7%), followed by infrastructure, which reaches R$ 8.0 billion (9.8%). At lower levels, family farming received R$ 5.4 billion (6.9%), and industry received R$ 3.3 billion (4.1%). Other sectors have a very small share, among which low-carbon agriculture (R$ 552 million; 0.68%), tourism (R$ 273 million; 0.34%) and forestry (R$ 191 million; 0.24%) stand out. The confirmation of the hegemony of agriculture in FNO disbursements directly addresses the debate by Abramovay et al. (2025), who point to regenerative livestock farming as a possible alternative, although it is often treated as an “oxymoron”. The fact that billions are already allocated to the sector suggests that the issue is not one of lack of credit, but rather its orientation: expanding lines of credit for regenerative livestock farming would allow part of this investment to be transformed into a vector for transition, aligning the economic role of the sector with socio-environmental objectives.
Graph 4: Total FNE Resources per year (2015-2024)
Source: Own elaboration, based on data from Banco do Nordeste (2015–2019)
Graph 4 shows the evolution of the total amount of resources from the Constitutional Fund for Financing the Northeast (FNE) between 2015 and 2024. At the beginning of the series, the values remained relatively stable, varying between R$ 11 billion and R$ 16 billion until 2017. From 2018 onwards, there was a significant jump, with resources reaching R$ 32.6 billion. In the following years, disbursements fluctuated, declining in 2019 (R$ 29.6 billion) and especially in 2020 and 2021, when volumes fell to approximately R$ 25.8 billion. From 2022 onwards, there is a consistent recovery, with significant growth: R$ 32.3 billion in 2022, R$ 43.7 billion in 2023 and the highest value in the series in 2024, totalling R$ 44.8 billion. In the case of the FNE, the jump from 2018 and the record in 2024 demonstrate an even greater fiscal capacity than that observed in the North. This scenario reinforces the relevance of the results of Lima (2023), which show that, despite the higher initial cost, regenerative practices tend to reduce expenses in the medium and long term. In other words, the increase in resources available in the FNE can be directed to finance this transition, favouring producers in the Cerrado and Semi-Arid regions who face greater challenges in terms of productive and environmental resilience.
Graph 5: Total FNE Resources by Sector (2015-2024)
Source: Own elaboration, based on data from Bando do Nordeste (2015–2019)
Graph 5 shows the distribution of resources from the Constitutional Fund for Financing the Northeast (FNE) among different economic sectors from 2015 to 2024. It can be seen that most of the resources were allocated to infrastructure, which received R$ 73.3 billion, equivalent to 26.8% of the total. Next are three sectors with very similar shares: family farming (R$ 42.4 billion; 15.5%), agriculture (R$ 42.2 billion; 15.4%) and commerce (R$ 40.5 billion; 14.8%). Together, these three sectors account for almost half of the disbursements. Other relevant segments include services (R$ 30.3 billion; 11.1%) and industry (R$ 23.7 billion; 8.7%). Livestock appears with R$ 17.0 billion (6.2%), while agribusiness occupies the smallest share among the main sectors, with R$ 4.0 billion (1.5%). This distribution shows that, unlike the FNO — heavily concentrated in agriculture —, the FNE has a more diversified allocation, although still concentrated in traditional sectors. The more diversified allocation of the FNE, with emphasis on infrastructure, family farming, and the agricultural sector, suggests fertile ground for the introduction of regenerative practices on a larger scale. However, as with the FNO, sectors directly linked to sustainability remain marginal. On this point, the results of Dias (2023) are illuminating, demonstrating that regenerative practices can simultaneously improve animal productivity and reduce environmental impacts in different biomes. This shows that integrating FNE credit with regenerative agriculture policies is not only feasible but also strategic for balancing regional development and climate change mitigation.
An analysis of the evolution and sectoral distribution of FNO and FNE resources between 2015 and 2024 highlights both the expansion of financing capacity and the strong concentration in traditional sectors, with low inclusion of initiatives aimed at sustainability . In dialogue with the literature, it is observed that this allocation pattern contrasts with the evidence of the viability and transformative potential of regenerative agriculture. Marques (2022) and Lima (2023) demonstrate that such practices can be economically profitable, reducing costs and strengthening productive resilience, while Medeiros (2023) highlights the diversity of possible arrangements for agroecological transition. Abramovay et al. (2025) highlight that even cattle farming, traditionally associated with environmental degradation, can be reconfigured along regenerative lines, provided it is supported by public policies and targeted credit. Finally, Dias (2023) shows that productive and environmental gains can be achieved in different Brazilian biomes when regenerative practices are adopted. Given this, the results suggest that constitutional funds have the fiscal and institutional conditions to reorient part of their resources, expanding the financing of regenerative practices without compromising the logic of supporting the primary sector, thus contributing to aligning regional development with the agenda for transition to a low-carbon economy.
References
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