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This report summarises the seminar held in Rio de Janeiro on July 12-13, 2007 focusing on Agrofuels and its consequent effects on family and peasant farming within the context of Brazilian agriculture and rural development. The paper is divided into three chapters ranging from the context and problems relating to agrofuels in Brazil to the challenges and prospects for agrofuels in the country. Each chapter was a presentation at the seminar and the paper later discusses the ideas within the debate and tries to identify the key points raised at the seminar. The event was based on the initiative of the Working Group on agriculture of REBRIP (Brazilian Network for the Integration of the Peoples) and FASE (Federation of Agencies for Social and Educational Assistance), with the support from ActionAid Brazil, the Heinrich Boll Foundation and Oxfam International., Chapter I; Context and problems related to agrofuels in Brazil, Jean Pierre Leroy (FASE), Chatper II; Inputs for the discussion on agrofuels in Brazil, John Wilkinson and Selena Herrera (CPDA/UFRRJ), Chapter III; Challenges and prospects for agrofuels in Brazil: family agriculture in relation to ethanol from sugarcane and biofuel from soybean, castor bean and palm oil, Célio Bermann (coordinator), Luis Macedo Swarthy, Mariana Soares Domingues and Renato Rosenberg (IEE/USP)