Application of rural credit reaches R$270 billion in seven months of the 2023-24 Harvest Plan

With an increase of 16% compared to the same period last harvest, the amount of rural credit disbursement reached R$270,9 billion in the 2023/24 Harvest Plan, in the period from July/2023 to January/2024. Cost financing was used in the amount of R$152 billion. Concessions for investment lines totaled R$62 billion. Commercialization operations reached R$33 billion and industrialization operations reached R$24 billion. 

1.369.816 contracts were made in the seven-month period of the agricultural year, 1.018.946 of which were in Pronaf (National Program for Strengthening Family Farming) and 135.378 in Pronamp (National Support Program for Medium Rural Producers). 

The other producers formalized 215.492 contracts, corresponding to R$194,8 billion in financing released by financial institutions. 

The total of R$271 billion corresponds to 62% of the amount that was programmed for the current harvest for all producers (small, medium and large), which is R$435,8 billion.

In corporate agriculture (medium and large farmers), the application of rural credit reached R$232 billion from July to January, corresponding to an increase of 18% compared to the same period of the previous year. This value represents 64% 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, almost R$39 billion in Pronaf and R$37,2 billion in Pronamp. 

In agricultural financing for investment, the Program for Modernization of Agriculture and Conservation of Natural Resources (ModerAgro) had contracts in the order of R$ 1,6 billion, meaning an increase of 19% compared to the same period in the previous harvest. And financing for Pronamp reached R$3,7 billion, an increase of 97%. 

In relation to the sources of rural credit resources, the share of free equalizable resources reached R$ 12,7 billion, meaning an increase of 332% in relation to the same period of the previous harvest, signaling a greater use of this source, made available by financial institutions for equalization within the Safra Plan.

It is also worth highlighting the contribution of the uncontrolled source of the Agribusiness Letter of Credit (LCA) to the funding of rural credit, which accounted for 49% of total corporate agriculture applications in the first seven months of the current harvest, standing at R$ 112,5 billion, an increase of 118% compared to the same period last harvest, when this source represented 26% (R$ 51,6 billion). 

The values ​​presented are provisional and were extracted on the 05th 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.