This document summarizes the Rio Rural Programme in Rio de Janeiro, Brazil, which uses a micro-watershed approach to promote sustainable rural development. The key points are: 1) The Rio Rural Programme operates in 72 municipalities, 366 micro-watersheds and has benefited over 50,000 small farmers since 2006 with $233 million invested. 2) It focuses on integrated water management, conservation of natural resources, and improving productivity while empowering local communities to self-manage projects. 3) Results include over 37,000 benefiting families, hundreds of thousands of hectares under improved production systems, and extensive capacity building, infrastructure development, and co-investment of $14 million.

1. SUSTAINABLE RURAL DEVELOPMENT PROGRAMME
RIO RURAL PROGRAMME – Integrated financing strategies
for development of ES in micro-watersheds of the State of
Rio de Janeiro
GOVERNMENT OF THE STATE OF RIO DE JANEIRO
SECRETARIAT OF AGRICULTURE AND LIVESTOCK
SUPERINTENDENCE OF SUSTAINABLE DEVELOPMENT
Taller Integracion de instrumentos para Generacion de servicios
ecosistemicos de la agricultura
Experiencias, Estado Actual y Perspectivas para América Latina y el Caribe
Nelson Teixeira – Rio Rural Executive Director
Helga Hissa – Rio Rural Technical Coordinator
Bogotá, July 8th, 2015

2. MISSION: PROMOTE SUSTAINABLE DEVELOPMENT OF THE
AGRICULTURAL SECTOR OF THE STATE OF RIO DE JANEIRO
Micro-watershed as a territorial PLANNING,
INTERVENTION, MONITORING AND EVALUATION UNIT
Inspired on lessons learned from PR, SC, SP and RS States in more than 40 years
Objective: Promote sustainable development of the agricultural sector
of the state of Rio de Janeiro, using the micro-watershed approach
methodology to identify and support local initiatives and arrangements
that enable construction of a continuous and evolutionary process of
income generation, environmental respectability and social equity, thus
providing improved life quality of the whole society and especially of
those who live of family farming.

3. RIO RURAL PROGRAMME
RIO RURAL
(2006-2018)
US$ 233 milllion
72 municipalities
366 micro-watersheds
1.580.000 ha (36%)
50.000 smallfarmers
Scalling up from a pilot project to a public policy
Key strategies:
- Focus on water management
- Conservation of natural
resources integrated to
raise in productivity;
- Bottom-up approach
- Community self management
- Co-financing and partnerships

5. RESULTS - RIO RURAL
• 37,000 family farmers benefited
• 266 micro-watersheds
• 450,000 hectares of agricultural land under improved production systems
• 25,300 sanitation, sustainable production and infrastructure subprojects
• 29,000 farmers, technicians and local actors involved in capacity-building activities
• 242 Micro-watershed Management Committees established, with 2,302 members
• 216 Micro-watershed Executive Plans (PEM) designed
• US$ 14 million in co-investments
• 42 Participatory Research Units implemented
• 21 mechanized patrols + 32 soil conservation patrols
• 5.706 km of roads rehabilitated, benefiting 27.958 farmers
• Networking of 20 institutions engaging farmers, extensionists and researchers on sustainable and
organic systems (more 130 organic farmers certified)
• Impact evaluation, scientific and participatory monitoring of social, environment and economical
impacts
• Information management system implemented

6. TERRITORIAL/ WATERSHEDS
RJ STATE (sub-national)
MUNICIPAL
COMMUNITY
(Micro-Watershed)
TERRITORIAL PLANNING INTEGRATION FOR ES – Improving governance
FARM
Sustainable Territorial
Development Plans
Watershed Plans
Micro-watershed
Executive Plans & Rural
Participatory Diagnosis
Farm Plans
Federal policies,
State SRD Plan
• Food, water and energy supply
• water cycle regulation
• biodiversity conservation
• carbon sequestration
• landscapes
• cultural aspects
• genetic resources
• Resilience to environmental
disastersMunicipal SRD Plans
Ecosystems Services
Beneficiaries
• Farmers
• Municipal institutions
• Watershed Commitees
• Industries
• Companies of water and
energy supply

7. Integration of Public and Private co-
investments
Possible co-financing from different
users of the ecosystem services
provided by agriculture
CAR, PSE (Water, Carbon,
Biodiversity) Zoning around
Protected Areas:
$ LAW 12651/2012 &
9985/2000
$ Producer of Water (ANA)
Agriculture, Forest plantations,
organic production and
agroforestry:
$ PRONAF/Law 11326/2006
$ Credit ABC
Machinery, IT and other
inputs to improve
production quality:
BB
BNDES
Technical assistance:
$ BC/Coop Credito
Technical assistance:
$ PNATER/CNA/SENAR
Agriculture Production
Purchase:
$ PAA (MDS)
$ PNAE (MDS)
Water saving equipment &
materials:
$ Water for All
Agriculture Production
Purchase, technical
assistance:
$ PNPB/PNPSB/PNPMF
Biodiversity Conservation
$ ICMS Ecologic
PSE for Carbon, Water and
Biodiversity:
$ Compensatory (private) -
BVtrading
Sanitation infrastructure
$ Watershed comittes (water
users)
Roads maintanance
$ RJ Estradas da Produção
Promotion of
community cultural
activities
$ MinC
Technical assistance,
equipments and inputs for
farmers:
$ RJ Credit ICMS
PEFATE
Rural Entrepreneurships
$ CNA
$ Inst Souza Cruz (Novos
Rurais) – Private CSR
Plantas medicinais
$ PNPMF

8. Farmers adopting sustainable
production systems (increased
productivity) integrated to
environmental protection practices
Barriers
• Poor information among users and providers
of ES concerninng ES
• Weak rural commnunty organization
• Lack of basic infrastructure in rural areas
(sanitation, roads, IT)
• High costs of conservation practices x low
prices of agricultural products
• Lack of credit policies suitable to SE
• Technical assistance focused on agriculture
systems
• Poor engagement of the private sector
Environmental services
(food, water production,
biodiversity conservation,
climate and water cycle
regulation, soil conservation
ADOPTION OF SUSTAINABLE PRACTICES: BARRIERS AND THREATS
Threats
• Poor valuation of ES
• Unsustainable consumption patterns
• Lack of alignment of public policies
(economical x sustainable
development)
• Inexistence of a long term strategy
to financial sustaintability
Consumidores de SE

9. INTEGRATION OF PUBLIC POLICIES AND PRIVATE CO-INVESTMENTS
Recommendations to improve IES to smallfarmers
• Improve/adjust agricultural credit to support adoption
of conservation practices ;
• Establish mechanisms to facilitate adding value to sustainable
agriculture products;
• Capacity building of technicians, researchers, managers,
and farmers in integrated sustainable and conservation
Practices;
• Raise awareness of relevant stakeholders about key
environmental issues;
• Implement basic infrastructure in rural areas
(sanitation, roads, communication technology)
• Adoption of the microwatershed approach to implement
and monitor SRD policies;
• Allignment of ES to agricultural technological and productivity
improvements as to garantee ES supply through income generation
• Create mechanisms to facilitate the active role of
private sector in ES co-investments
• Stimulate community selfmanagement in provision of ES
• Engage rural organziations on SRD policy making at local, municipal,
regional and national levels
• Participatory monitoring of social, environmental and
Economical impacts, using easy tools

11. FINANCIAL SUSTENTABILITY SYSTEM