Farsul submits amendments to the Provisional Measure on rural renegotiation.

The Rio Grande do Sul State Agriculture Federation (Farsul) has submitted two proposed amendments to Provisional Measure No. 1.376/2026, which deals with the renegotiation of rural debts, to the Parliamentary Agricultural Front (FPA). The texts were sent ready for use by parliamentarians, who have until this Thursday (August 6th) to present their suggestions for changes to the text. According to the entity, if approved, the changes should increase from 10% to 90% the proportion of Rio Grande do Sul producers eligible to access the facilitated conditions of the measure.

This initiative follows up on the diagnosis presented by Farsul's Economic Advisory team at the end of July, when a survey of real-life producer cases indicated that 88,3% of the outstanding debt analyzed (R$ 93 million in rural credit contracts) fell outside the scope of the Provisional Measure. Only R$ 10,85 million, equivalent to 11,7% of the sample, met the eligibility requirements stipulated in the regulation.

The study identified the exclusion of Rural Product Certificates (CPRs) from credit lines with controlled interest rates, between 6% and 12% per year, as the main bottleneck. This type of credit currently accounts for 42,8% of all rural credit granted in Brazil in the 2025/26 harvest. The research also exposed what Farsul calls the "Gaucho paradox," where Rio Grande do Sul has the lowest rural default rate in the country (5,3%, according to Serasa Experian), but concentrates the largest portfolio of problematic rural credit in absolute value, R$ 39,9 billion in April 2026, according to the Central Bank. This value is almost double that of Mato Grosso, the second-placed state.

The proposed amendments

The first amendment alters articles 1, 2, 4, 5, 6, and 10 of the Provisional Measure and brings together the six adjustment fronts already announced by Farsul: the inclusion of CPRs (Rural Product Certificates) among the eligible instruments under the same conditions as financing; the expansion of article 6 to cover CPRs issued in favor of cooperatives and resellers or distributors of inputs, and not only financial institutions; the possibility that investment installments renegotiated by formal addendum access the facilitated line even without an express declaration of default; the replacement of the fixed deadline of May 31, 2026 (prior to the publication of the Provisional Measure itself, on July 15) with a criterion linked to the date of contracting the new line of credit; an exception to the prohibition for those who have already renegotiated under Provisional Measure 1.314/2025, when there is a new loss event; and the creation of a specific entry point for working capital operations linked to rural activity, which currently does not fall under any clause of the regulation. The justification for the text argues that the original wording, by benefiting those who failed to pay more than those who made an effort to remain current, creates a regulatory incentive that is detrimental to a culture of timely payment.

The second amendment includes paragraph 11 to article 1 aimed at grain producers: it allows proof of income losses required by the Provisional Measure to be made, in the absence of a technical report from a qualified professional, by a certificate or report issued within the scope of the Agricultural Verification, Monitoring and Grain Conformity Infrastructure (VMG Infrastructure), established by the Ministry of Agriculture and Livestock. The proposal does not waive the proof of loss nor replace the already accepted report; it only creates an alternative means for producers who, for operational reasons or due to the availability of professionals in the region, were unable to obtain the document within the deadline.

Two areas of operation

Farsul is simultaneously working on two fronts. In the Legislative branch, it is coordinating with parliamentarians from the Rio Grande do Sul state delegation and the Parliamentary Agricultural Front to present amendments before the deadline. In the Executive branch, it is maintaining direct contact with the Ministry of Finance to ensure that the federal government acknowledges the problems identified in the measure and drafts a new, more comprehensive text for the renegotiation of rural debts.

MP 1.376/2026, published on July 15th, authorizes rural credit lines for renegotiating debts related to operating costs, investments, and CPRs (Rural Product Certificates), in addition to the Union's participation in a guarantee fund for producers affected by climatic events, with interest rates ranging from 6% to 12% per year and terms of up to ten years for those who qualify. The deadline for converting the MP into law is 120 days after publication.