Application of rural credit reaches R$186 billion

The disbursement of rural credit for family and business agriculture in the first four months of the 2023/2024 Harvest Plan reached R$186 billion, an increase of 14% compared to the same period of the last harvest. Cost financing was used in the amount of R$110 billion. Concessions for investment lines totaled R$35 billion. Commercialization operations reached R$21 billion and industrialization operations reached R$19 billion.

According to the analysis of the Agricultural Policy Secretariat of the Ministry of Agriculture and Livestock (Mapa), 832.726 contracts were carried out in the four-month period of the agricultural year, 602.528 of which were in Pronaf (National Program for Strengthening Family Farming) and 101.614 in Pronamp (National Support Program for Medium Rural Producers).

The total of R$186 billion corresponds to 43% of the amount that was programmed for the current harvest for all producers (small, medium and large), of R$435,8 billion.  

The application of rural credit for corporate agriculture (medium and large farmers) reached R$160,3 billion from July to October, an increase of 18% compared to the same period of the previous year. This value corresponds to 44% of the total programmed by the government, of R$364,2 billion.

The amounts granted to small and medium-sized producers for all purposes (funding, investment, commercialization and industrialization) were, respectively, R$26,5 billion in Pronaf and R$28,5 billion in Pronamp.

The other producers formalized 128.584 contracts, corresponding to R$131,8 billion in financing released by financial institutions.

In agricultural financing for investment, the Agriculture Modernization and Conservation of Natural Resources Program (ModerAgro) had contracts in the order of R$ 1,0 billion, meaning an increase of 22% compared to the same period in the previous harvest. And financing for the Pronamp program reached R$2,5 billion, an increase of 50%.

In relation to the sources of rural credit resources, the share of free equalizable resources reached R$ 8,7 billion, meaning an increase of 445% in relation to the same period of the previous harvest, signaling a greater use of this source, made available for equalization within of the Safra Plan.

The Substitute Secretary for Agricultural Policy, Wilson Vaz de Araújo, highlighted the contribution of the uncontrolled source of the Agribusiness Letter of Credit (LCA) to rural credit funding, which accounted for 46% of total corporate agriculture applications in the first four months of the current harvest, standing at R$73,1 billion, an increase of 84% compared to the same period of the last harvest, when this source represented 29% (R$39,6 billion).

The values ​​presented are provisional and were extracted on the 06th of this month, from the Rural Credit and Proagro Operations System (Sicor/BCB), which records credit operations reported by financial institutions authorized to operate in rural credit.

Depending on the date of consultation in Sicor or in the Rural Credit Thematic Panel of the Brazilian Agricultural Observatory, variations may be observed in the data made available over the thirty days following the last month of the period considered.