Paraná asks for R$277 billion in resources in the 2021/22 Harvest Plan

FAEP, rural unions from Paraná, Fetaep, Ocepar, State Secretariat for Agriculture and Supply (Seab) sent a document to the federal government in which they request that the 2021/22 Harvest Plan include resources in the order of R$277 billion. Submitted on March 5, the proposal also lists the priority lines of the agricultural sector with regard to funding, marketing and investment. Traditionally, entities from Paraná forward their demands to the Ministry of Agriculture, Livestock and Supply (Mapa) before the start of each harvest, with the aim of contributing to the preparation of the plan.

“The important thing is that we have an increase in the volume of resources but also the best allocation, mainly in investment. Therefore, the entities established priority lines”, highlights Ágide Meneguette, president of the FAEP/SENAR-PR System. “It is worth remembering that the agricultural sector was decisive for the country's economy last year and, even in a period of pandemic, it had a surplus, with R$871,3 billion in Gross Production Value and more than US$100 billion exported” , he adds.

Paraná argues that, of the total resources requested, R$209 billion be allocated to funding and commercialization programs. For one of the main lines, the National Support Program for Medium Rural Producers (Pronamp), the proposal is to allocate R$40 billion. To finance the National Family Agriculture Program (Pronaf), entities from Paraná are demanding R$23 billion. Furthermore, the document requests an increase in the Pronaf eligibility ceiling and an increase in the cost contracting limit.

“Due to the increase in prices and production costs, this adjustment to the framework is necessary. Producers who were part of Pronaf will end up not complying with the program because of these increases, if the ceiling is not increased”, observes the coordinator of FAEP's Technical Economic Department (DTE), Jefrey Albers.

In terms of investment, Paraná requested the allocation of R$68 billion. The document established as priorities the Incentive programs for Irrigation and Production in a Protected Environment (Moderinfra), the Incentive for Technological Innovation in Agricultural Production (Inovagro), the ABC Program and the Warehouse Construction and Expansion Program (PCA).

“In the case of storage, for example, we need to increase investments, because our harvest grows annually and we do not have, proportionally, this increase in storage capacity. We need both transit warehouses and storage so that the producer can sell at the best time”, points out Albers.

Furthermore, the document also highlights the Rural Insurance Subsidy Program (PSR), for which R$1,5 billion is claimed. In the assessment of Paraná entities, this risk management policy is strategic as it represents protection not only for rural producers, but for the sector as a whole. Paraná is the state that contracts the most rural insurance.

Interest

For all lines, State entities also defend a reduction of one percentage point in the interest rate. Also in this sense, the proposal is that the Safra Plan includes an increase from R$11,3 billion to R$15 billion in resources destined to equalize the interest rate – money to be injected as compensation to banking institutions, to maintain the interest rate interest rate controlled to rural producers in lines of credit, funding and investment.

The document also presents a proposal to expand the capture of resources aimed at agriculture: increasing the targeting of the volume raised through Agricultural Credit Letters (LCAs) to the sector. Today, financial institutions that issue LCAs are required to allocate only 35% of the proceeds to the sector. Paraná's demand is that at least 50% of the resources be contributed to financing agriculture.

Check out Paraná's main requests for PAP 2021/22

Volume of resources:
Total R$277 billion
Costing and Commercialization R$ 209 billion
Pronaf: R$23 billion
Pronamp: R$40 billion
Investment R$68 billion

PRONAF: