Monetary Council approves Crop Plan measures

According to the undersecretary for Agricultural Policy and Agro-environmental Business at the Economic Policy Secretariat of the Ministry of Finance, Gilson Bittencourt, the change aims to encourage compliance with environmental criteria. “We want the validation of registrations to gain strength”, he declared.

On the other hand, the CMN tightened the rules for obtaining rural credit by those who do not comply with social, environmental and climate criteria. The granting of loans and financing to producers with suspended CAR, embargoed by an environmental agency (federal or state) or who operate in conservation units, indigenous lands and public forests not intended for rural activity will be prohibited.

In the case of conservation units, the prohibition will not apply to traditional populations living in the territories or to areas with an authorized management plan. With regard to public forests, the restrictions will not cover rural properties with property title, properties with up to four fiscal modules (minimum area necessary for subsistence, which varies according to the region) and properties with a request for regularization analyzed and approved by the National Institute of Colonization and Agrarian Reform (Incra).

family agriculture

The CMN also approved the reduction, from 5% to 4% per annum, of interest on investment and funding lines for food producers with great weight in the calculation of inflation, such as beans, rice, cassava, vegetables and fruits. The rate of lines of investment in agricultural machinery of the Program for Strengthening Family Agriculture (Pronaf) fell from 6% to 5% per year.

Other measures

The CMN made the line of credit permanent for the recovery of coffee plantations affected by hail and windstorms. The agency also approved a new range for Moderfrota, a program that finances the purchase of agricultural machinery and equipment. Medium producers will pay interest of 10% per year. Larger producers will continue to pay 12.5% ​​per year.

The Low Carbon Agriculture Program (ABC) had its name changed to RenovAgro and started to finance the recovery of pastures and degraded areas, with interest of 7% per year. A costing line was also created for products from socio-biodiversity activities (that encourage social and biological diversity), for products included in agroecological systems and for organic production systems, with interest of 3% per year.