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Rural credit contracting reaches R $ 169 billion in nine months The value represents an increase of 22% in relation to the same period of the previous harvest.

The value of rural credit contracts totaled R $ 169.44 billion between July 2020 and March 2021, which represents an increase of 22% in relation to the same period of the previous harvest. Of this amount, R $ 90.77 billion was allocated to funding (18% increase), R $ 53.39 billion to investment (+ 43%), R $ 15.51 billion to commercialization (-3%) and R $ 9.77 billion for industrialization (+ 7%). The data are from the Agricultural Crop Balance of the Crop 2020/2021.
The contracting of rural credit by the group of small and medium producers, within the scope of the National Program for Strengthening Family Agriculture (Pronaf) and the National Support Program for Medium Producers (Pronamp) totaled R $ 47.1 billion, distributed in 1,311 .710 operations. This was the largest volume of resources ever observed in the same period of previous harvests. In the total contracted of these two programs, there was an increase of 11.2%, being 17% in Pronaf, and 5% in Pronamp.
The other producers increased sharply the demand for investment credit (61%), and, for small and medium producers, it stood at 8% and 0.2%, respectively. Total rural credit contracting increased by 26%.
The increase in the relative use of resources from uncontrolled sources grew by 32%, mainly those resulting from the issuance of Letters of Credit for Agribusiness - LCAs (30%) and free resources (78%), most of which are used by large producers .
Within the scope of investment programs, with resources from the National Bank for Economic and Social Development (BNDES) managed by the Ministry of Agriculture, Livestock and Supply, the main highlights, in contracted value and respective increase, were the Construction and Expansion Program for Warehouses (PCA): R $ 1.76 billion (62%), the Incentive Program for Technological Innovation in Agricultural Production (Inovagro): R $ 1.56 billion (27%), the Incentive Program for Irrigation and Production in Protected Environment (Moderinfra): R $ 747 million (112%), and the Cooperative Development Program for Adding Value to Agricultural Production (Prodecoop): R $ 597 million (151%


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

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