CNA calls for supplementation of R$ 1,5 billion for rural credit

The Brazilian Agriculture and Livestock Confederation (CNA) sent a letter to the Ministry of Finance requesting a budget supplement of R$1,5 billion to equalize interest rates on official rural credit programs.

In the document, the CNA justified that part of the 2023 budget, destined for this equalization, is already compromised and several credit lines, such as investments by the National Bank for Economic and Social Development (BNDES), are suspended.

According to the Confederation, the rise in interest rates and the insufficient budget meant that resources for equalizing rates in rural credit ran out sooner than expected. Furthermore, the increase in production costs impacted the increase in the average ticket for operations.

“Thus, rural producers needed more resources to finance their production and make use of technological innovations necessary for the development of Brazilian agriculture”, says the letter.

The entity explained that, with the interruptions in investment lines, right at the beginning of the 2022/2023 harvest, many operations were stopped in the credit conveyors of financial institutions, delaying investments in items that are bottlenecks in the sector, such as storage, irrigation and low carbon agriculture practices.

The prices of some fertilizers such as urea and potassium chloride increased by 30%, on average, from March 2022 to February 2023, while the prices of soybeans, corn and cattle fell by around 20% in the same period .

Still in the letter, the CNA says that it recognizes and understands the difficulties faced with the budget. However, it assesses that the approval and release of the volume of resources requested is essential and urgent to guarantee the continuity of investments in the sector.