Audio (01:26s)
Rural producers across the country have until May 31st to renegotiate rural credit debts used for investments. The measure approved by the National Monetary Council (CMN) aims to alleviate the pockets of farmers who suffered crop losses due to adverse weather conditions, such as excess or lack of rain — and who saw the prices of agricultural products plummet.
Banks that lent to producers will be able to postpone or pay in installments debts that mature between January 2nd and December 30th of this year, relating to investment contracts in soybean and corn crops and dairy and beef cattle farming.
But to be entitled to renegotiation, farmers must have paid the financing installments that fell due by December 30th of last year.
According to the Ministry of Agriculture and Livestock (Mapa), producers who qualify for the measure must have a report from their agronomist — and only then go to the financial institution in search of a new agreement.
Economist Cesar Bergo agrees with granting some relief to these people. “It is a measure that can, in some way, provide comfort to these producers. Debt renegotiation is crucial to alleviate the financial issue and difficulties they will face and are facing, and allows them to maintain their operations, including avoiding bankruptcy” , he states.
Problems in the 23/24 harvest
The possibility of renegotiating rural credit debts even before the consolidated harvest results are due to the climatic problems that some of the country’s main producing regions faced, mainly soybeans and corn — the two main grains in terms of production. Some locations in the South and Central-West regions, in addition to the state of São Paulo, recorded a loss of productivity.
For Bergo, in addition to avoiding bankruptcy, the measure provides financial breathing room for producers to be able to invest with an eye on the next harvest, whose main plantings begin in the second half of the year. “They end up having resources to be able to take care of the next harvest, also due to the difficulties we are still facing with the climate issue. So, the government ends up, in some way, benefiting from this, because you will have a guarantee of supply of agricultural products “, he adds.
Mapa’s estimate is that the installments due this year total more than R$28 billion that can be renegotiated. Check below who can renegotiate rural credit debts.
Ministry of Agriculture and Livestock studies expanding resources for Rural Insurance
Graduated in Journalism from the University of Brasília (UnB), since 2020 he has been a reporter for Brasil 61. During his studies, he covered Politics and Economy for the newspaper O Globo, as well as Education and Career for Correio Braziliense.
Edition: Zildenor Dourado
Zildenor Dourado has a degree in Journalism and Literature/Portuguese from the University of Brasília. He is a specialist in Legislative Communication, from Unilegis, of the Federal Senate. He worked as a reporter and editor for the newspapers Tribuna da Bahia, A Tarde and Jornal de Brasília. in addition to several union press vehicles. He worked as a public servant for the Federal Legislative Chamber, where he was a reporter, editor and head of the Publicity and Press Relations Section.
