Supporting deforestation-free agriculture: Rabobank Brazil’s Commitment to the Cerrado Biome
Sao Paolo, August 2025 - Rabobank Brazil is back onboard with the Responsible Commodities Facility (RCF), which is expanding to USD60 million for the 2025/26 crop season. This initiative supports farmers cultivating soy without clearing forests or native vegetation in Brazil’s Cerrado region. Why does this matter? Because the Cerrado is the world’s most biodiverse savanna, yet is increasingly threatened by land conversion - largely driven by rising global demand for soy. The RCF aims to protect this vital ecosystem while helping farmers thrive.
A Strong Framework for Sustainable Soy: RCF’s Environmental Backbone
The RCF is backed by a strong environmental and social (E&S) framework. An independent Environmental Committee - featuring organizations like the UN Environment Programme, The Nature Conservancy and others - oversees the program. For the 2025/26 season, the RCF will finance around 280 farms, producing 240,000 tons of soy and conserving around 90,000 hectares of native vegetation.
Global Collaboration in Action: Rabobank and Partners Drive Impact
Rabobank isn’t doing this alone. Key investors include UK retailers like Sainsbury’s, Tesco, and Waitrose; the British government’s Mobilising Funds for Forests (MFF); the AGRI3 Fund; and the Inter-American Development Bank (IDB). These partners support different levels of investment risk, with Rabobank and IDB taking the senior tranche. Over 70% of the farmers supported by the RCF are already Rabobank Brazil clients - creating a strong link between Rabobank’s European and South American networks.
Farmers joining the RCF are required to commit to deforestation-free production and also to maintaining native vegetation above the legal requirement as defined by the Brazil Forest Code. These requirements are fully aligned with Rabobank Brazil’s land use strategy of working with farmers to avoid deforestation and to maintain nature beyond the legal requirements.
Smart Financing for a Greener Future: How the RCF Structure Works
Here’s how the financing works: Rabobank and IDB subscribe to the senior securities; AGRI3 covers the mezzanine, and the UK retailers and MFF take on the junior tranche. The total loans USD 60 million – are used to provide crop financing to farmers, secured by the soy crop and contracts with international agri traders. The RCF structure enjoys a strong brAA- rating from Standard & Poor’s.
Unite to Unlock
This facility is a great example of Rabobank’s collaborative spirit. Both Rural and Wholesale Teams from Rabobank Brazil; Specialized Lending Europe; TCF; and the Blended Finance team of Rabo Partnerships all came together to make it happen. It’s a real-world example of our mission: Growing a Better World Together.