Safra Plan: CNA defends the supplementation of R$ 2.1 billion to Rural Insurance in 2024

The plan focuses on increasing the resources available for financing — especially for rural insurance — and gives priority to investment lines. Furthermore, it includes regulating the law that established the Catastrophe Fund and encouraging the development of the capital and private securities markets, among other measures.

João Crisóstomo, agribusiness consultant at BMJ Consultores Associados, highlights that today agribusiness is one of the most important sectors for the Brazilian economy. He points out that in the last two years, mainly, the sector has contributed significantly to the growth of the country’s Gross Domestic Product (GDP).

“Last year, we had a pleasant surprise in growth, largely due to production, we had an increase in production from 2022 to 2023. We even had a record increase of 15.1% in agricultural GDP, when we compare 2023 in relation to 2022”, he informs.

Rural Credit: deadline for producers to renegotiate debts ends on May 31st

Investments

Crisóstomo highlights that, currently, Brazilian agribusiness is one of the most technologically advanced — not only in precision agriculture, but also with regard to biotechnology and genetic engineering.

“We have a huge frontier with bioinputs that are already widely used in the country, but there is still a frontier to be explored by the country, and investment in agribusiness is relevant not only for the production itself, but also for its ability to spill over to other sectors”, he explains.

He also states that investment in agribusiness is one of those that most promotes the internalization of resources. According to him, the country’s agricultural centers are not in large centers but in the interior of the country. Thus, this allows more remote regions to have access to income more easily and intensively.

For the livestock coordinator at Safras & Mercado consultancy, Fernando Iglesias, investment in agribusiness is the guiding principle behind technological innovations, improving infrastructure and increasing productivity.

“For all of this to happen, you need resources. You need to put money into the activity, to turn this into an increase in average productivity, reducing the bottlenecks that are present in different sectors of the economy. Investment is basically an essential context for the development of a certain activity”, he highlights.

Negative impacts

At the beginning of the 2024/2025 Harvest Plan document, the CNA notes that — in recent months — the agricultural sector has faced a scenario marked by uncertainty due to climate adversities associated with the The boy.

According to the CNA, although the phenomenon is losing intensity, the adverse effects on productivity and production are already noticeable in several production chains, especially in soybeans and corn — which are the main agricultural products.

In this context, the CNA emphasizes the need to reevaluate the available agricultural policy instruments, such as rural credit, rural insurance and the minimum price guarantee policy, to structure strategic actions capable of mitigating the negative impacts of climate and market conditions. on the agricultural sector.

Check out the list of 10 proposals highlighted by CNA:

1. Guarantee supplementation of R$2.1 billion to Rural Insurance in 2024 (totaling R$3 billion) and R$4 billion for 2025.

2. Make R$570 billion available in financeable resources from the PAP 2024/2025, with R$359 billion for funding and commercialization; R$111 billion for investments and R$100 billion for family farming. Ensuring that the announced resources are available throughout the harvest.

3. Prioritize resources for investment purposes, mainly for small and medium-sized producers (Pronaf and Pronamp) and programs for the construction of warehouses (PCA), irrigation (Proirriga), technological innovations (Inovagro) and for Sustainable Agricultural Production Systems ( Renovagro).

4. Strengthen the budget for Official Credit Operations (OOC), especially subsidies to support prices and marketing and funding.

5. Promote regulatory measures to expand sources of rural credit resources, through measures that make the application of rural credit requirements more flexible.

6. Regulate Complementary Law No. 137/2020, which created the Catastrophe Fund.

7. Enable fee rebates or increases in the financeable limit for producers who promote socio-environmental practices.

8. Promote adjustments to avoid excesses and distortions in the interpretation of resolutions, such as CMN Resolution No. 5,081/2023 and BCB Resolution No. 140/2021, which deal with socio-environmental issues, without compromising compliance with environmental preservation.

9. Promote the advancement of the capital market and private agribusiness securities, making it possible to increase funding for the sector.

10. Curb tying practices and enable the reduction of ancillary costs of rural credit, especially through regulation and modernization of the registration market.