CMN facilitates access for family farmers to an agrarian reform fund

The Monetary Council eliminated the requirement for the beneficiary to submit an active Declaration of Eligibility for the National Program for Strengthening Family Agriculture (Pronaf) or another form of family farmer registration to take out loans. Young people aged 18 to 30 will have specific conditions to finance rural properties in their state of origin or in their current state of domicile.

In addition, the equity limit for accessing credit rose from up to R$40,000 to up to R$70,000 in the North region and in the municipalities covered by the Superintendency for the Development of the Northeast (Sudene) and from up to R$80,000 to up to R$140,000 in other regions. Rural producers in the Sudene region will be able to contract financing at interest rates of 2.5% per year.

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The CMN also adjusted rules from Pronaf, the National Support Program for Medium Rural Producers (Pronamp) and the Agricultural Activity Guarantee Program (Proagro) to the Harvest Plan 2023-2024.

With regard to Pronamp, the granting of investment credit for the purchase of machinery and equipment that can be financed by the Program for Modernizing the Fleet of Agricultural Tractors and Associated Implements and Harvesters (Moderfrota/Pronamp) was prohibited. According to the Ministry of Finance, the change allows Pronamp resources to be used to finance other investment or costing items.

Regarding Pronaf, the CMN resumed the requirement that the National Bank for Economic and Social Development (BNDES) accredit equipment for the generation of solar energy among the products that can be financed with funds from the development bank. The condition will be that the equipment be used in the agricultural production unit itself.