São Paulo – This Wednesday (29), the Brazilian federal government launched the 2022/2023 agribusiness financing plan (Plano Safra), which will provide a total of BRL 340.8 billion (D 65 billion at the current rate) in credit to national agribusiness production until June next year. According to the Ministry of Agriculture, the amount represents a 36% increase from the previous year, in which BRL 251 billion (D 47.9 billion) were made available to rural producers.
The new plan was announced during a ceremony at Palácio do Planalto, the seat of the national executive power, with the presence of president Jair Bolsonaro, minister of Agriculture Marcos Montes, and other authorities. Of the total resources made available, BRL 246.28 billion (D 47 billion) will be allocated to funding and marketing, a 39% boost over the previous year. Another BRL 94.6 billion (D 18 billion) will be directed to investments, a 29% growth.
Resources with controlled interest rates will total BRL 195.7 billion (D 37.3 billion), and with open interest, BRL 145.18 billion (D 27.7 billion). The amount of equalized resources, part of the interest not charged to the borrower, extended by 31%, reaching BRL 115.8 billion (D 22.1 billion) in the next harvest, according to the government.
The new agribusiness financing plan also expanded, from 50% to 70%, the possibility of using resources from Agribusiness Letters of Credit (LCA). The LCA is a fixed income security issued by banks to finance agribusiness activities. According to the government, expectations are for the measure to generate a more significant share of private agri-finance with the expansion of securities such as R, CDCA, CRA, and LCA.
Pronaf & Pronamp
Resources for small rural producers, through the National Program for Strengthening Family Agriculture (Pronaf), rose 36%, totaling BRL 53.61 billion (D 10.23 billion), with an interest rate of 5% per year (for food production and socio-biodiversity products) and 6% per year (for other products).
For medium-sized producers, under the National Program for Medium Rural Producers (Pronamp), BRL 43.75 billion (D 8.35 billion) will be made available, a 28% increase from the previous harvest, with an interest of 8% a year.
Translated by Elúsio Brasileiro
