Application of rural credit exceeds R$271 billion at the end of the 2020/2021 season

With the end of the 2020/2021 Harvest Plan on June 30th, rural producers and credit cooperatives contracted R$271,5 billion in official rural credit, an increase of 27% compared to the previous period. This amount included acquisitions of CPR (Rural Product Certificate) and agribusiness operations.

According to Agricultural Financing Balance Sheet for the 2020/2021 Crop, the highlight of this plan was investments, which exceeded the resource schedule by 34% and reached R$76,2 billion. Pronaf presented a balance 10% higher than the last harvest, totaling R$ 14,5 billion, and hiring by small producers exceeded available resources. The Moderinfra/Proirriga (+132%), Prodecoop (+132%) and PCA (+72%) programs showed the greatest variations in applications.

Funding applications reached R$135,3 billion, an increase of 27% compared to the previous season. Commercialization was R$25,4 billion (10%) and industrialization was R$12,5 billion (15%).

The regions with the greatest representation in rural credit contracts were the South (33%) and the Central-West (28%). Agricultural activity accounted for 67% and livestock farming 33%, with the contracted resources mainly allocated to soybean, beef and corn products, respectively. 

Regarding segments, credit to beneficiaries was granted through public banks (55%), private banks (24%), credit cooperatives (20%) and development banks and development agencies (1%). In relation to the last harvest, cooperatives had a gain of 2% and public banks of 1% in their share of the total volume of contracts.

The share of free resources grew by 32% compared to the previous harvest, concentrated essentially on larger producers and cooperatives, especially in investment financing. “Resources at controlled rates grew 23%, with evidence for financing granted to small and medium-sized producers, financed almost entirely with resources at controlled interest rates”, highlights the director of Credit and Information, from the Secretariat of Agricultural Policy , from the Ministry of Agriculture, Livestock and Supply, Wilson Vaz de Araújo.