Faep System Criticizes Criteria for Renegotiating Rural Debts

The Ministry of Agriculture and Livestock (MAPA) published Ordinance 114/2025, which lists the 1.363 Brazilian municipalities eligible to access the National Bank for Economic and Social Development (BNDES) credit line for renegotiating rural debt. In Paraná, only 50 municipalities were included, a number lower than the 129 initially estimated by the Faep System.

The Paraná-based entity criticizes the criteria defined by the National Monetary Council (CMN), which condition access to credit on two factors: average loss percentages calculated by the Municipal Agricultural Survey (PAM) of the Brazilian Institute of Geography and Statistics (IBGE), and the existence of at least two municipal decrees of calamity or emergency recognized by the federal government between 2020 and 2024. According to the rule, only municipalities that registered losses above 20% in two of the three main agricultural activities are eligible, based on PAM/IBGE data.

For the Faep System, this methodology doesn't reflect the reality on the ground. The restrictive criteria harm thousands of producers who have directly suffered the effects of droughts and other adverse weather conditions since 2020, even in municipalities that haven't had multiple decrees or losses in two crops simultaneously.

"It's unreasonable for farmers who have lost their crops to be excluded from a credit line based on statistical criteria that don't reflect the reality on the ground. Conditioning producers' access to regional average percentages ignores the specificities of each property and the actual extent of the losses," says the interim president of the Faep System. Agide Eduardo Meneguette (in the picture).

According to the Paraná-based entity, access should be guaranteed based on technical reports from qualified professionals—already provided for in Resolution 5.247/2025—and should not rely on indices that fail to capture the true extent of losses. The official calculation compares each municipality's current production with the highest average yield between 2020 and 2024. In practice, this makes it impossible to prove losses in locations that have faced several poor harvests, as their averages are artificially low.

Between 2020 and 2023, Paraná faced four consecutive years of severe droughts, which reduced soybean, corn, wheat, and bean production in virtually all regions. "The producers most affected by adverse weather conditions are precisely those least likely to report losses, because municipal averages are already very low. This model ends up punishing precisely those who most need support to recover," concludes Meneguette.