The 2019/2020 Harvest Plan has been in effect since Monday (1st). The plan has R$225.59 billion, of which R$169.33 billion will be for rural credit (financing, marketing and industrialization) and R$53.41 billion will be for investments. The Rural Insurance Premium Subsidy Program will have R$1 billion, more than the previous one for the 2018/2019 harvest. For 2020, there will be R$1.85 billion to support marketing in the form of direct purchase from the producer, put option contracts and price subsidies. The plan is valid until June 30, 2020.
Interest rates were maintained at levels that allow support for rural producers. In the case of financing, marketing and industrialization, the interest rates will be 3% per year and 4.6% per year for small producers (Pronaf), 6% per year for medium producers (Pronamp) and 8% per year for other producers.
In investment programs, rates will vary from 3% to 10.5% per year.
Last Thursday (27), the National Monetary Council approved the rates, resources and measures of the plan.
Find out more about the 2019/2020 Harvest Plan:
Small and medium producers
Beneficiaries of the National Program for Strengthening Family Farming (Pronaf) have R$31.22 billion available for funding, marketing and investment. For the first time, the National Treasury allocated more resources to subsidize the program than the others, totaling R$4.975 billion.
Funding resources are guaranteed for the production of basic foods: rice, beans, cassava, wheat, milk, fruits and vegetables and for investment in the recovery of degraded areas, protected cultivation, storage, milk cooling tanks and renewable energy.
Another unprecedented measure is that the financing can be used to build and renovate rural homes for small farmers. R$500 million will be earmarked for this purpose, a long-standing demand from the rural sector. With these resources, it will be possible to build up to 10,000 homes.
Resources for Pronamp (National Program to Support Medium-Sized Rural Producers) increased to R$26.49 billion, R$6.46 billion more than planned for the 2018/2019 harvest, representing an increase of R$321 billion in funding. Producers who do not qualify for Pronaf may benefit from Pronamp.
Rural insurance
In 2020, R$1 billion will be allocated to subsidize the purchase of insurance policies across the country. This is the largest amount the program will receive since its creation in 2004.
With this amount, approximately 150.5 thousand rural producers will be able to have their harvest insured. 212.1 thousand policies should be contracted, with coverage of 15.6 million hectares and an insured value of R$42 billion.
Marketing Support
New minimum prices were approved, with an average adjustment of 7% for the main products. These values were based on crop costs, prices on international markets and the outlook for exchange rates.
Financing
Some measures to improve access, increase the supply of credit and reduce financial costs will be implemented through a provisional measure: Rural Product Bill (CPR) in dollars, the Fraternal Guarantee Fund, Affected Assets and equalization of interest for cereal producers.
Investments
Within the investment resources, the Agriculture Modernization and Natural Resources Conservation Program (Moderagro) provides for the possibility of financing yerba mate and sugar cane for the production of cachaça.
There was also an increase in the credit limit per beneficiary of the Incentive Program for Irrigation and Production in Protected Environments (Moderinfra). For individual enterprises, it went from R$2 million to R$3.3 million per beneficiary. In the case of collective enterprises, it went from R$6.6 million to R$9.9 million. The credit limit will be permanent.
Bank of Brazil
In the 2019/2020 harvest, Banco do Brasil, one of the main financiers of agriculture, will allocate R$103 billion, 20% more than in the previous harvest. Of the total, R$91.5 billion will be for rural credit and R$11.5 billion for agro-industrial credit. By segment, R$14.1 billion will be for family farming and R$77.4 billion for other producers.
The bank also announced that, in addition to agricultural insurance and billing for financed areas, non-financed areas or areas financed with CPR may be contracted online, which allows instant pricing and contracting for specific customers and payment of insurance in up to 7 interest-free installments.
“The Bank will make available BB Seguro Pecuário Faturamento, guaranteeing farmers the payment of compensation when the revenue obtained from the sale of the insured herd is lower than the guaranteed revenue (insured value) stated in the policy”, informed the bank.
In Pronaf Custeio, family farmers will be able, through the BB App, to renew operations at any time, without needing to go to a branch.
