Embrapa, or the Brazilian Agricultural Research Corporation, is a public institution that develops research, innovations, and technological solutions for agriculture and livestock. Embrapa is linked to the Ministry of Agriculture, Livestock, and Supply.
In 2024, Embrapa’s discretionary budget approved in the Annual Budget Law (PLOA) comprised:
- US$ 27.8 million under the new Growth Acceleration Program (PAC) for investments in modernizing laboratories and experimental fields (acquisition of scientific instruments/equipment) and completing works initiated under the 2008 PAC;
- US$ 28.9 million for research funding (with 1,056 ongoing projects requiring approximately US$ 24.6 million annually), livestock maintenance, and fixed expenses for the management of decentralized units, administrative areas, and experimental fields.
Budget Reduction
Over the past decade (2014 to 2024), Embrapa’s discretionary budget (funding for operations and investments) has decreased by 80%. To meet ongoing commitments in agricultural research, public policies, and sectoral demands while addressing emerging challenges such as food security, climate change, agricultural decarbonization, socio-productive and digital inclusion, and energy transition, Embrapa estimates it needs US$ 83.6 million annually.
However, due to fiscal adjustments, Embrapa’s 2024 budget faced blockages and cancellations, affecting payments and contract settlements across all units by December 2024. These constraints also prevented the initiation of new R&D projects despite their approval.
The funds allocated in 2024 were distributed proportionally to the decentralized research units based on their indicated priorities. Nevertheless, the company closed the fiscal year with a general budget deficit of approximately US$ 32.8 million, including fixed expenses, institutional costs, and R&D projects.
Since March 2024, Embrapa has formally communicated the need for budget supplementation to the Ministry of Agriculture and Livestock (Mapa), its supervisory body, and to economic ministries. Despite seeking congressional support, the requested supplemental credit was not approved by the Budget Execution Board (JEO) of the Civil House due to fiscal constraints.
Cost Reduction Measures
To address the ongoing budget reduction, Embrapa has implemented several cost-saving initiatives:
- Establishment of 33 photovoltaic plants at research units to generate clean energy and reduce energy costs for laboratories, experimental fields, and administrative areas;
- Collective procurement of office supplies and some agricultural inputs among units;
- Negotiation for the exemption of certain state taxes, similar to existing federal tax exemptions;
- Studies to adopt additional cost-saving measures.
In October 2024, Embrapa restructured its headquarters, reducing central units from 24 to 13, enhancing efficiency and achieving annual savings of US$ 164,000.
Despite these efforts, budget deficits have persisted across administrations and are typically addressed over time through appropriate financial and budgetary adjustments aligned with the company’s strategic goals.
Most Affected Segments
The reduction in Embrapa’s budget over the past decade has directly impacted ongoing research as well as the implementation of approved new projects related to climate issues linked to food production, sustainable production systems, genetic improvement, integrated carbon platforms, space agriculture, artificial intelligence, and genomics applied to agriculture, as well as territorial activities in regions like Matopiba and traditional communities, among other strategically important areas for the country.
Embrapa has made a significant institutional effort to coordinate partnerships for innovation and development projects. Currently, approximately 73% of its R&D projects are carried out with external funding sources, demonstrating the institution’s capacity for partnership and resource mobilization. Embrapa has also taken measures to implement its Technological Innovation Center (NIT), aimed at providing greater flexibility and agility in research for partnership capture, execution, and innovation management within the company.
Official statement by Embrapa.