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Those who work in the field can count on rural credit to develop activities, whether for investment or to fund production. Everyone has access: large, medium and small producers. In the first month of the 2021/2022 harvest, R$ 27 billion were contracted, an increase of 16% compared to the first month of financing of the last harvest.
Investment funds increased by 38%. They are used, for example, in the purchase of machinery and implements. On the other hand, the costing operations, for the acquisition of fertilizers, seeds and expenses with the preparation of the land, there was an increase of 12% compared to the same period last year.
The data are from the Agricultural Financing Balance Sheet for the 2021/2022 Crop, by the Ministry of Agriculture, Livestock and Supply (Mapa).
"This performance surpassed all observations from previous years in July, partly due to investment demands that were no longer contracted at the end of the last crop plan, given the early exhaustion of resources, and above all, due to the credibility of the producers rural areas in agricultural production. The motivation made this strong takeover of credit and with signs that this should persist in the coming months”, explained the director of Credit and Information at the Ministry, Wilson Vaz de Araújo.
"It is within normality, a very strong demand, which is good, in every sense, and signs that we will have, again, if weather conditions help, a very good harvest at the end of 2022," he added.
Small Farmers
Producers of the National Program for Strengthening Family Agriculture (Pronaf) contracted R$ 6.6 billion, an increase of 56% in total. But 87% of the funds for investments and 78% for other purposes still remain to be contracted, according to the ministry.
Less structured family farmers have access to rural credit at a lower interest rate. According to the Ministry of Agriculture, in the Rural Productive Microcredit line, for example, aimed at financing expenses to increase production, the interest is 0.5% a year. And with a discount that can be 25% or 40%, on each installment of the loan, when payment is made by the due date.
Another Pronaf line that benefits farmers from the National Agrarian Reform Program, the National Rural Credit Program, provides access to credit at a rate of 0.5% per year and a discount of up to 42.8%, for the purchase of animals, machinery, equipment, as well as resources to fund the purchase of seeds, inputs for planting the crop, with interest of 1.5% per year.
Rural credit
Credit operations are carried out by federal public banks, private banks, cooperative banks and credit cooperatives. Rural credit lines are available to farmers and production cooperatives. They can also access the resource processors, agro-industrialists and cereal producers who accumulate cleaning, standardization, storage and sale of agricultural products.
The resources can be used for costing (purchase of seeds, fertilizers, soil preparation), investment (purchasing machinery and equipment), commercialization (sale of production) and industrialization (benefiting the product).
Those interested in obtaining rural credit should contact the rural union in their city, Emater in their state or an agency of Banco do Brasil or an accredited financial institution.
Find out more information about rural credit (https://www.gov.br/agricultura/pt-br/assuntos/politica-agricola/credito-rural)
Crop Plan
The 2021/2022 Harvest Plan has R$ 251.22 billion to support national agricultural production. The value reflects an increase of R$ 14.9 billion (6.3%) compared to the previous one. Of the total, BRL 177.78 billion are allocated to funding and marketing and BRL 73.4 billion to investments.
For small rural producers, R$ 39.34 billion were allocated in financing by the National Program for Strengthening Family Agriculture (Pronaf). An increase of 19% compared to the previous crop.


Mr. Alessandro Jacob speaking about Brazilian Law on "International Bar Association" conference

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