CERC predicts strong growth in CPR and Green CPR registrations by the end of 2022

The law that makes the registration of Rural Product Certificates (CPR) mandatory enters the second phase, with titles above R$ 250 thousand, and CERC, a leading financial market infrastructure in the registration of physical CPRs, with an accumulated market share in December 2021 of 54,23% in physical CPRs, estimates that there will be a 50% growth in the volume of registrations by the end of 2022 in relation to the previous year, motivated by the high demand for registration of titles in the new value ranges and due to the arrival of Green CPRs, which offer better financing conditions to producers who best preserve the biomes of their crops.

More than R$100 billion were registered in CPRs, physical and financial, with an issuance value above R$1 million in 2021. The adjustment process entered its second phase in January 2022, when registration became mandatory of papers above R$250 thousand. In 2024, it will be valid for all titles in the sector.

Leader in the registration of physical CPRs, CERC already holds more than 54% of the registration market for this type of title, covering the main productive sectors in Brazil. The main financed products (CPRs registered with CERC) are soybeans, corn, coffee, cotton and milk. Together with financial CPRs, CERC totals more than R$31,6 billion in settled CPRs.

“The performance in the first year of mandatory registration of CPRs highlights the potential of Brazilian agribusiness, as, despite the high value, there are still many operations to be registered, especially in the exchange of products between producers and companies producing inputs, chemicals, seeds, among others, and which, when presented, can provide more guarantees for the entire production chain and allow better conditions for rural producers”, explains Fernando Fontes, CEO of CERC.

Since the beginning of 2021, CERC has registered more than R$31,6 billion between financial and physical CPRs, which represents approximately 25% of market share.

Encouragement for environmental preservation

In addition to all the concern to register financial and physical CPRs with a view to increasing financing possibilities, the sector now has a new type of title, the Green CPR (created on October 1, 2021), which aims to promote agribusiness at the same time as encourages the environmental preservation of Brazilian biomes.

The new type of this credit title registration will benefit rural owners who commit to financing reforestation activities and maintenance of native vegetation on their property. Therefore, the larger the preserved area, the greater the producer's opportunity to have access to financing with better conditions.

“The world is paying attention to the initiatives that must be taken to protect the Environment, and this has guided many commercial agreements in different countries, and in Brazil it would be no different. CPR Verde comes with an agenda to stimulate the economic development of agribusiness, maintaining efficiency and also encouraging environmental preservation”, explains the CEO of CERC, who estimates significant growth in demand for paper in the coming months.