Programa de Desarrollo Local

About the program

PRODESAL seeks to improve agricultural and livestock production of small farmers seeking to increase their income and improve their quality of life, through the delivery of technical assistance and investment funds. The program focuses on small farmers, farm workers and their families, regardless of resource availability.

Country Chile
Classification Technical Assistance, Financing and credit
FNS Dimension Disponibilidad

General objective

Expand the skills and opportunities for small farmers, peasants and their families, in order to improve their production systems and related activities and incubate and develop economic initiatives, helping to increase their income and quality of life.

Specific objectives

  • Develop skills to maintain or improve production systems.
  • Support the incubation of economic enterprises and market linkages.
  • Facilitate access to financing for investments and working capital.
  • Articulate with other development programs and / or credit, such as INDAP and other public and private entities.
  • Promote the development of social capital and participation.
  • Promoting coordination with other entities, both public and private, to address problems associated with the community and its territory.
  • Promote sustainable development.
Components and/or products

Economic incentives

The program provides incentives for capacity development, working capital and investments.

Capacity building: This component is funded by INDAP with the executing agency. When the executing agencies are public entities they must math INDAP’s contribution ate least to 15%, maintaining higher historical contributions. Regarding private executing agencies, INDAP pays for the service to the company and in accordance with the bidding conditions or terms of reference, as noted in the procedures provided for in the Public Procurement Act.

The items to be financed by INDAP are:

  1. Fees and mobilization cash transfers for technical equipment.
  2. Coordination and program monitoring groups.

The items to be financed by the Municipality are:

  1. Complementary services. They include hiring specialized consulting, lectures, training, technical tours, field trips, workshops, establishment of demonstrative units and other complementary activities.
  2. General expenses. It corresponds to office expenses.
  3. Complement fees and / or mobilization.

Working Capital: According to budget availability, INDAP provides to each operating unit a maximum amount of up to 4.5UF per user and provides 95% of the total cost of the acquired inputs. These resources are intended to finance working capital and may be used individually and / or associatively, in order to purchase supplies and materials needed for the development of agriculture, forestry and / or related activities of each user (fertilizers, pesticides, irrigation tapes, etc.) and/or group activities (vaccines, parasiticides for veterinary operations, among others).

Investments: Resources are preferably oriented towards co-financing forestry and agricultural economic enterprises and / or related individual or associative activities. INDAP co-finances up to 90% of the gross value of the project, the remaining 10% is paid by the user.

Technical Assistance

This Program delivers technical assistance that is articulated and differentiated; it is focused on supporting the following areas:

  • Development of productive capacities. Advice and support for maintaining or improving the technical management and management of production systems and consumption-oriented generation of small surpluses, according to the needs and interests of each family.
  • Incubation and improving economic ventures and market linkages. Advice and support for creating and / or improving  individual or associative economic enterprises, based on forestry and agricultural activities and / or related, aimed at achieving levels of development that allows them to move towards other INDAP programs, or other development agencies, that may provide them more specialized support.
  • Coordination with other financing programs through incentives and / or credits. To access additional programs, both from INDAP or from public or private entities. Access to these benefits is determined by the rules that regulate and / or the requirements of each case.
  • Improvement of social capital, partnerships and participation in rural communities. Support in order to promote partnership through building networks in the territory, integrating producers with their peers and other public and private stakeholders that are linked to the territories.
  • Coordination with public and private networks. To meet needs beyond the scope of INDAP both building and developing rural areas, addressing aspects of road infrastructure, housing, basic services, among others.
  • Promotion of sustainable development. Advice and support to raise awareness and promote sustainable use of natural resources through the implementation of management practices that protect and / or improve these natural resources.
Target population

Small farmers, farm workers and their families, which are developing agriculture, forestry activities and / or related activities who need to improve or maintain their productive systems and / or develop new ventures.

The holders of the program can be two or more small farmers and / or farmers in the same premises, provided they manage forestry and agricultural activities and / or related, which should be distinct and economically independent from the other and on different surfaces of the same property.

The requirements are as follows:

  • Meet the conditions for being eligible, according to the Organic Law of INDAP No. 18,910, as amended by Law No. 19,213, according to the provisions of the procedure for the accreditation of the user status of INDAP.
  • Comply with the general requirements of the General Regulations for the delivery of economic incentives for productive development of INDAP and its amendments.
  • Present requests for support regarding on-farm consumption and / or creating economic ventures


Geographical coverage Rural
Responsible organism

Ministerio de Agricultura

Executing organism Instituto de Desarrollo Agropecuario
Normative framework

Resolución Exenta N° 98584. Normas PRODESAL. 7 de julio 2015.

Resolución Exenta N° 173435 que aprueba la modificación a las Normas Técnicas y Procedimientos Operativos del Programa de Desarrollo Local (PRODESAL) y aprueba texto refundido.

Resolución Exenta N° 170594 que aprueba la modificación a las Normas Técnicas y Procedimientos Operativos del Programa de Desarrollo Local (PRODESAL) y aprueba texto refundido.

Reglamento General para la Entrega de Incentivos Económicos de Fomento Productivo.

Financial sources

The State provides financial resources