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Federal Government Launches Credit Line of R$12 Billion to Help Rural Producers with Debts Caused by Climatic Events.
Government Releases Credit Line of R$12 Billion for Rural Producers in Emergency Situations
To alleviate debts in the countryside and give new breath to the agriculture economy, the Federal Government launched, on Monday (22), a credit line of up to R$12 billion. The initiative serves rural producers and agricultural cooperatives affected by natural disasters.
The Federal Government published the measure in the Official Gazette and included municipalities that declared a state of public calamity or emergency in recent years.
The National Monetary Council (CMN) approved the action through Resolution No. 5,247. With this, the Government aims to help producers who suffered losses due to floods, droughts, frosts, strong winds, and other extreme climatic events.
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Producers may use the funds to settle or amortize agricultural debts, such as operating loans, investments, and Rural Product Bills (CPRs).
With this, the Government seeks to stabilize the financial situation of producers, protect agriculture, and boost economic recovery in the most affected regions.
Credit Line Targets Those Who Really Need It
The measure is exclusively for rural producers and agricultural cooperatives that have suffered significant losses in crops or production.
To access the credit line, the operation must be in municipalities that, between January 1, 2020, and December 31, 2024, have declared public calamity or emergency due to extreme climatic events.
Additionally, the decree must have been officially recognized by the Ministry of Integration and Regional Development.
But there is another criterion: the producer must prove at least two losses of 20% or more in average production yield in two of the three main agricultural activities.
The calculation of these losses follows the technical criteria defined by the Ministry of Agriculture and Livestock.
Who Can Contract the New Credit Line?
The Federal Government’s credit line covers three profiles of rural producers, with distinct limits:
- Up to R$ 250 thousand for beneficiaries of Pronaf (National Program for Strengthening Family Farming);
- Up to R$ 1.5 million for beneficiaries of Pronamp (National Program to Support Medium-Sized Rural Producers);
- Up to R$ 3 million for other rural producers, outside these two programs.
This segmentation ensures that small, medium, and large producers have proportional access to the available resources, according to their production capacity and scale of operation in agriculture.
Agricultural Debts Can Be Settled with the New Rules
The new credit line will allow producers to settle or reduce debts from agricultural financing, both for operating and investment loans. The rule applies even to operations that were previously renegotiated or extended.
Additionally, the measure includes Rural Product Bills (CPRs) issued by producers in favor of financial institutions.
However, only those contracted until June 30, 2024, and that meet the compliance and default criteria defined by the regulation are included.
According to the resolution, the CPR must be compliant until June 30, 2024, and then default on September 5, 2025.
Facilitated Conditions and Long Reimbursement Period
To facilitate access, the CMN defined special conditions for the repayment of the new credit line.
The reimbursement period can reach up to nine years, with up to one year of grace period. This gives financial relief to producers, who will be able to recover without compromising production in the short term.
Additionally, the deadline for contracting goes until February 10, 2026. That is, there is sufficient time to organize documentation and make the request at authorized financial institutions.
Measure Aims to Strengthen the Economy and Ensure Security in the Field
The Federal Government’s decision is strategic to strengthen the rural economy, one of the pillars of the country’s development.
By reducing indebtedness in the countryside, the new credit line preserves jobs and ensures food supply. Furthermore, it stimulates the continuity of agricultural activities in areas harshly affected by climate.
With this measure, the Government reinforces direct support to rural producers and demonstrates commitment to agriculture. The sector represents a significant part of the national GDP and is essential for Brazilian exports.
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