CMN approves conditions for the 2022/2023 Crop Plan credit lines

The National Monetary Council (CMN) approved, this Wednesday (29), the rules and conditions of the rural credit lines of the 2022/2023 Crop Plan. The vote took place in an extraordinary meeting for the appreciation of the votes of the Ministry of Economy. In a note, the ministry pointed out that, although they were high compared to those defined in the past harvest, all interest rates were below the current Selic rate, which is 13.25% per year.CMN approves conditions for the 2022/2023 Crop Plan credit linesCMN approves conditions for the 2022/2023 Crop Plan credit lines

The new Safra Plan was announced, also this Wednesday, in a ceremony at Palácio do Planalto, effective from July. all in all, will be available a total of R$ 340.88 billion in financing to support national agricultural production until June next year. The value, according to the Ministry of Agriculture, Livestock and Supply, represents an increase of 36% in relation to the previous Crop Plan, when made available R$ 251 billion to rural producers.

The lowest interest rates will be applied to financing contracted by farmers linked to the National Program for Strengthening Family Agriculture (Pronaf). In funding and investment operations for this public, in the case of items related to food production or with strong environmental additionality, the rate was 5% per year (pa). For the other items, the interest rate was 6% (pa). Favored rates were established for financing to medium-sized rural producers through Pronamp (8% pa) and for the ABC and PCA Programs (8.5% pa), as well as for business investment (10.5% pa).

In all, a total of R$ 340.88 billion in financing will be made available to support national agricultural production until June next year.

In all, a total of R$ 340.88 billion in financing will be made available to support agricultural production until 2023 – Ministry of Economy

The CMN also amended the Rural Credit Manual to prioritize financing programs for smaller producers and activities that are environmentally sustainable or promote increased productivity. New limits were also created on financing lines, such as the R$ 40 million in the Warehouse Construction Program (PCA), for grain storage.

The interest rates defined by the CMN for the Constitutional Financing Funds, and for Rural Credit in general, were defined between 6.67% pa to 11.69% pa, considering the performance bonus:

The CMN also authorized the individualization of collective financing agreements in the Land and Agrarian Reform Fund, carried out until June 30, 2011, to allow this process to occur until the end of the collective agreement financing operation, as provided for by the refinancing of agricultural credits.

Finally, the CMN fixed the guarantee prices of the 19 crops supported by the Price Guarantee Program for Family Agriculture (PGPAF), involving credit operations maturing in the period from July 10, 2022 to July 9, 2023, considering variable production costs or minimum prices in force.

The CMN is a collegiate body chaired by the Minister of Economy, Paulo Guedes, and composed of the president of the Central Bank, Roberto Campos Neto, and the Special Secretary for the Treasury and Budget of the Ministry of Economy, Esteves Colnago.

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