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Agriculture and land use practices must be significantly improved to satisfy the needs of future generations without placing further pressure on global ecosystems. Agroforestry systems (AFS) have been quoted as one of the best options to mitigate environmental impacts and at the same time, improve smallholders' livelihoods in agricultural areas. However, studies investigating the environmental aspects and yield of agroforestry systems in rural settlements, established by governmental initiatives, are still uncommon in the literature. Therefore, the goal of this paper was to assess the contribution of five bio-diverse AFS, located in the Cerrado biome, to global warming mitigation and the provision of ecosystem services to smallholder farmers. Additionally, the importance of agroforestry projects to family farms in Brazil was discussed. Relying on data from forestry inventory and in-depth interviews with farmers, the crop yield (including fruit) was estimated; and the life cycle assessment method was used to determine the Global Warming Potential (GWP), accounting for all emissions to establish and manage the AFS up until the date of analysis. The results show the significant capacity of AFS sequester carbon, represented by the negative values of GWP, ranging from (-263) to (-496) t CO2 equivalents per hectare. Each farmer adopted different tree and crop species at the AFS establishment what influenced yields and GWP. The high number of fruit trees contributed positively to the AFS outputs, allowing farmers to consume and sell a large variety of products. Furthermore, the households also benefit from microclimate and aesthetic benefits provided by the AFS5. Future agroforestry projects in rural settlements can contribute significantly to improve household livelihoods, as well as environmental protection. However, efforts should be taken to provide farmers with sound knowledge, financial support, and access to markets to thrive. (C) 2019 Elsevier Ltd. All rights reserved.