During the first stage of the project, the beneficiaries undertook activities such as planning, execution, and evaluation of the project. They have learned how to hold meetings and register facts. Participation is improving in particular regarding discussions anout cooperation, an issue of extreme importance for Agrarian Reform Settlements. More specifically, a meeting was hled for socialization of the project; the Lamarca Settlement Woman Farmer's Association was consolidated; a monthly fair was held for commercialization of products such as sweets, cheese and molasses; Baru nuts were collected; a workshop on Cerrado fruit industrailization was held; a workshop was held, discussing socialization of cultural knowledge and foods; a diagnosis of cerrado fruits in the settlement was prepared; the first draft of the blueprints for the building to hold the equipment was prepared; a discussion about strategic lines for production was held; and construction of a heritage seed bank was encouraged, for independence of the smallholders from the market. The problems diffciulties faced were the effort of conciliating daily activities with project activities by the community members; lack of participation by a few members of the community; political interference; heavy rains followed by a long drought; lack of basic infra-structure for the smallholder families; political division within the settlement; and conflicts about the role of gender in the project. These problems were approached and mostly solved by the strengthening of the internal organization in the settlement, by adjusting the planned activities to the agricultural calendar, by inviting the participation of young adults and students, by intensifying the capacity-building workshops and discussions, and by negotiaiton with the National Institute for Colonization and Agrarian Reform (INCRA) for implementation of a technical assistance program. The community members understand the importance of sustainable use of the natural resources and recuperation of degraded areas. The lessons learned in this regard are being useful in the preparation of a Agrarian Reform Settlement Recovery Plan, with environment as one of the core issues.