The Safra Plan could have a legal floor of R$250 billion annually.

The Agriculture, Livestock, Supply, and Rural Development Committee recently approved a bill requiring the federal government to allocate at least R$250 billion annually to finance the Harvest Plan. The rapporteur, Representative Caroline de Toni (PL-SC) (pictured), recommended approval of the measure, which is provided for in Bill 641/25, proposed by Representative Paulo Bilynskyj (PL-SP) and 32 other representatives. The authors argue that the goal is to ensure the predictability and stability of rural credit in Brazil.

If approved, the distribution of resources must follow the rules of 55% of the resources allocated to the cost and sale of agricultural production; 15% to the National Program for Strengthening Family Farming (Pronaf); 5% to the National Program for Supporting Medium-Sized Rural Producers (Pronamp); 20% for investments in technology and innovation in the field; and 5% for rural insurance.

The text also establishes that the government cannot cut these funds without Congressional approval. If the minimum amounts are not met, the Ministry of Finance will have to justify the situation to Congress and present a plan to replace the funds within 30 days.

When analyzing the proposal, the rapporteur argued that the lack of a legally defined minimum limit for financing the Safra Plan compromises producers' planning. "This predictability is essential not only for producers, but also for financial agents, credit unions, suppliers, and all other links in the agribusiness production chain," she noted.

The Safra Plan is the main financing instrument for Brazilian agriculture. It promotes food production, rural job creation, and rural development. Agribusiness accounts for more than a quarter of Brazil's Gross Domestic Product and a portion of national exports.

Next stages

The proposal will still be reviewed conclusively by the Finance and Taxation Committee, and the Constitution and Justice and Citizenship Committee. To become law, the text must be approved by both the House of Representatives and the Senate.