Brazil | Founding
Brazil launches the Harvest Plan 2020/2021, endowed with 236.3 billion Brazilian reals
According to the Brazilian Ministry of Agriculture, "the resources will guarantee the continuity of the production in the field and the supply of food in the country during and after the new coronavirus pandemic."6/18/2020
The Brazilian Government launched yesterday, at the Planalto Palace, the Harvest Plan 2020-2021, which will have 236.3 billion Brazilian reals to support national agricultural production, an increase of 13.5 billion compared to the previous plan. Financing can be contracted from July 1, 2020 to June 30, 2021. The ceremony took place at the Palácio do Planalto, with the presence of President Jair Bolsonaro and Minister Tereza Cristina (Agriculture, Livestock and Supply).
Of the total, 179,380 million Brazilian reals will be used for financing and marketing (5.9% above the value of the previous harvest) and 56,920 million will be invested in infrastructure (an increase of 6.6%). All these resources will guarantee the continuity of the production in the field and the food supply in the country during and after the pandemic of the new Coronavirus. Investment resources grew by an average of 29%.
During the launch of the Harvest Plan, President Jair Bolsonaro pointed out that agricultural production did not stop during the pandemic, guaranteeing food for the entire Brazilian population. “All countries aim at food security. The city can stop, but if one day the countryside stops, everyone will succumb, "Bolsonaro said.
Agriculture Minister Tereza Cristina said that the Harvest Plan continues to focus on small and medium producers. According to her, the incentive to sustainable production is also highlighted in the 2020/2021 harvest, which comes with more resources and better financing conditions, at lower interest rates. Sowing, planting, caring, expecting to flourish and finally reaping the fruits of the earth is and always will be something essential and beautiful. An activity totally linked to nature can only have the search for sustainability as a path, "said the minister.
She also recalled that, thanks to the work of agribusinesses and the areas of transport and logistics, Brazil maintained its supply throughout the country and fulfilled its commitments to its commercial partners. "The effort by the Jair Bolsonaro government to make this Harvest Plan viable is an acknowledgment of the achievements and potential of the sector that is ready to contribute to the economic recovery."
The Secretary of Agricultural Policy of the Ministry of Agriculture, Eduardo Sampaio, said that this is the largest Harvest Plan ever announced. “It represents a great effort by the government to provide farmers with better conditions. It is also a guarantee that food will continue to reach the Brazilian table and that Brazil will continue to be a major food exporter, ”he said.
Small and medium producer
Small rural producers will have R $ 33 billion to be financed by the National Program for the Strengthening of Family Farming (Pronaf), with interest of 2.75% and 4% per year, for financing and marketing.
For medium rural producers, 33.1 billion Brazilian reals will be allocated through the National Support Program for Medium Rural Producers (Pronamp), with interest rates of 5% per year (financing and marketing). For large producers, the interest rate will be 6% per year.
The subsidy to the Rural Insurance Premium increased by 30%, reaching 1.3 billion Brazilian reals, the highest amount since the creation of rural insurance. The amount should allow the contracting of 298 thousand policies, with an insured amount of approximately 52,000 million reals and a coverage of 21 million hectares.
To encourage the construction of warehouses on the properties, 2.2 billion reals will be allocated. For the financing of warehouses with a capacity of up to 6 thousand tons in properties, the interest rate is 5% per year.
The Harvest Plan highlights the lines of credit that contribute to the sustainability of agriculture. The Program to Reduce Greenhouse Gas Emissions in Agriculture (ABC Program), which is the main line to finance sustainable techniques, will have 2.5 billion reals in resources with an interest rate of 6% per year, an expansion of 400 million . In the 2020-2021 harvest, producers will have access to the ABC Ambiental line, with resources for forest restoration, with the aim of contributing to the adaptation of rural properties to the Forest Code. The interest rate is 4.5% per year.
Starting July 1, 2020, producers will be able to finance the acquisition of quotas for an environmental reserve, a measure approved by the National Monetary Council.
There are also incentives for the adoption of technologies related to bio-inputs within rural properties and by cooperatives. Producers can access cost modalities, for the acquisition of bio-inputs, or investments, in the assembly of bio-factories within the properties (on the farm). The resources are foreseen in Inovagro and, in the case of investments in bio-factories, they can reach 30% of the value of all financing. For cooperatives, the credit lines are Prodecoop, for the purchase of equipment for the production of bio-inputs.
Another novelty is Pronaf-Bio, aimed at supporting the production chains of the bioeconomy.
In Harvest Plan 2020/2021, financing is available for the purchase of climate monitoring equipment, such as weather stations and software, and to monitor soil moisture. Financing can be done through the Incentive Program for irrigation and production in a protected environment (Moderinfra).
Livestock will also receive financial support through the Innovation and Technological Incentive Program in Agricultural Production (Inovagro). Farmers may finance the purchase of precision livestock equipment and services.
Family farmers will be able to continue using the credit to finance and renovate rural houses. In this harvest, the resources for this purpose total 500 million Brazilian reals.
The son or daughter of the family farmer, who has a Declaration of Aptitude (DAP) from her family unit, can also apply for financing for the construction or renovation of homes on the parents' property.
In the Family Agriculture Price Guarantee Program (PGPAF), the discount voucher will be increased for cost and investment operations.
Family farmers and medium-sized producers will be able to finance technical assistance and rural extension activities, in isolation, through Pronaf and Pronamp, respectively.
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