Crop Plan 2023/2024 provides R$ 364.22 billion in resources for medium and large rural producers

The financing plan for agriculture and livestock farming in the country will total R$ 364.22 billion to finance the agricultural activity of medium and large producers until June 2024. The amount reflects an increase of approximately 27% in relation to funding previous year (R$ 287.16 billion). The announcement was shouted by the federal government during a ceremony held on Tuesday (27).

Resources are intended for rural credit for producers who are part of the National Support Program for Medium Rural Producers (Pronamp) and others.

According to the Ministry of Agriculture and Livestock, of the total resources made available for business agriculture, R$ 272.12 billion will be allocated to funding and marketing, and R$ 92.1 billion will be for investments.

Interest rates for funding and marketing will be 8% per year for producers included in Pronamp and 12% per year for others. Regarding investments, they vary between 7% and 12.5% ​​according to the program.

The Minister of Agriculture and Livestock (MAPA) of Brazil, Carlos Fávaro, celebrated the launch of the Crop Plan 2023/2024. “The harvest plan that unites the countryside, but also unites the city. That generates employment in the industry, that generates employment in the city, that generates well-being, that generates a better life for people”, he says.

Representing rural producers at the ceremony, the president of the Brazilian Association of Cotton Producers (Abrapa), Alexandre Schenkel, commented on expectations for the sector with the Crop Plan.

“We have high expectations in relation to the advances proposed by the government, which include unlocking investments in infrastructure and reducing bureaucracy. The sector anxiously awaits a tax reform that eliminates distortions and provides even more competitiveness for Brazilian agriculture, enabling an increase in exports, generating more jobs, social and economic development for Brazil,” he said.

Sustainability

One of the differentials of this year’s Business Harvest Plan is the quest to encourage environmentally sustainable production systems.

Prizes will be awarded to rural producers who already have the Rural Environmental Registry (CAR) analyzed and those rural producers who adopt agricultural practices considered more sustainable.

On the occasion, the Minister of Environment and Climate Change, Marina Silva, highlighted that the purpose of the Safra Plan is to find viable mechanisms to support the Brazilian agricultural sector to encourage rural producers to adhere to a transition to a low carbon economy.

“The idea is to gradually make it an important driver of action for productive practices, oriented towards environmental sustainability and the expansion of low-carbon agriculture through financial incentives, notably the granting of credit with lower interest rates for those who have good practices”, he highlighted.

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