For Faep, resources from the 2023/24 Harvest Plan meet expectations, but interest rates are a concern

The federal government announced, this Tuesday (27/06), that the 2023/24 Harvest Plan will make resources available in the order of R$364,2 billion to support the production of small and medium-sized rural producers. In addition to the record financial volume, this edition brings as a novelty the incentive to sustainability, by reducing the interest rate for producers who adopt conservation and environmental preservation practices. On Wednesday (28/06), the amounts that will be allocated to financing small producers will be announced, through the National Program for Strengthening Family Agriculture (Pronaf).

The announcement was made at a ceremony attended by President Luiz Inácio Lula da Silva and a series of ministers, including that of Agriculture and Livestock (Mapa), Carlos Fávaro. Classified as “the largest Harvest Plan in the history of Brazil”, the package includes a financial volume that corresponds to an increase of 26,8% in relation to the 2022/23 Harvest Plan. Of the resources made available, R$262 billion will be allocated to funding and commercialization programs; and R$92,1 billion, to investment lines.

For marketing costs, the interest rates provided for in the Harvest Plan must be 8% per year for medium producers – included in the National Support Program for Medium Rural Producers (Promamp) – and 12% for other producers. In the case of resources provided for investment lines, interest rates vary between 7% and 12,5% ​​per year, depending on the program accessed.

“It was a Harvest Plan within the expectations of the productive sector, with an important increase in financial volume, both for funding and for marketing. On the other hand, interest rates were a little higher than expected, with some lines with double-digit rates, which ends up weighing on the producer”, assessed the president of the FAEP/SENAR-PR System, Ágide Meneguette. “We hope that the resources are released in the most appropriate way possible, so that we do not have the financing problems that we observed in the 2022/23 harvest,” he added.

In February, FAEP, Fetaep, Ocepar, IDR-Paraná and Seab-PR prepared a Valid identity document with the main demands of agriculture in Paraná for the 2023/24 Harvest Plan.

At the launch, federal authorities celebrated the amount that will be made available to finance the season that begins on July 1st. “This is our government’s first Harvest Plan. As in our other governments, from 2003 to 2015 – with President Dilma Rousseff –, I am not afraid to tell you that every year we are going to make better plans than the previous year”, said President Lula.

“The Safra Plan is the union of the countryside and the city, which generates employment in industry, in the city, which generates well-being and improved lives for people. That's why we govern: so that people have well-being, that they have joy”, said Fávaro.

Sustainability

The 2023/24 Harvest Plan provides incentives for those who adopt sustainable practices. The package provides R$12 billion in interest exemptions for beneficiaries. According to the announcement, producers who have already had their registration analyzed in the Rural Environmental Registry (CAR) will have a 0,5 percentage point reduction in the funding interest rate, if they meet the following requirements: adhered to the Environmental Regularization Program (PRA), that are without environmental liabilities and that are eligible for the issuance of an environmental reserve quota.

Producers who adopt agricultural production practices considered more sustainable will also be entitled to a 0,5 percentage point reduction in the interest rate. Among them are the use of renewable energy in poultry farming, waste treatment in pig farming and traceability in cattle farming. Furthermore, practices such as organic or agroecological production, the use of bio-inputs, sustainability certification and the use of rock dust and limestone in the soil are considered sustainable. The regulation and form of proof of these activities are yet to be formalized.

Another important point is that the reduction in the interest rate due to good practices can be cumulative. In other words, if the producer proves that he adopts two of the sustainable practices listed, he will be entitled to 1 percentage point in his interest rate.

"Many producers in Paraná will not be able to access the benefits, because despite having registered with CAR, the records have not yet been analyzed by the authorities. So, in a way, the producer is being penalized for something for which he is not to blame", Meneguette pointed out. "On the other hand, Paraná is a reference in sustainability and the producer can achieve a reduction in interest rates by proving their practices", she added.

Present at the event, the Minister of Environment and Climate Change, Marina Silva, signaled that in the next plans the cut in interest rates for sustainable producers should be even greater. "This is version 1.0 [of the Safra Plan]. We will have version 1.1, 1.2, 1.3, 1,4...", she listed. “The idea is to make it [the Safra Plan] an important inducer of productive practices oriented towards environmental sustainability and low-carbon agriculture, through financial incentives, notably the reduction of interest rates”, summarized the minister.

Furthermore, the federal government replaced the old ABC Program with the Program for Financing Sustainable Agricultural Production Systems (RenovAgro), which includes low carbon emission practices. Through the program, producers will be able to finance initiatives, such as recovery of degraded areas and pastures, implementation and expansion of Crop Livestock Forest Integration systems (ILPF), adoption of conservation practices and protection of natural resources.

RenovAgro also included organic agriculture, recomposition of permanent preservation or legal reserve areas, production of bio-inputs and biofertilizers, systems for generating renewable energy and other practices that involve sustainable production and result in low greenhouse gas emissions.

“The production champion is also the preservation champion. That is the essential question. We can and must continue producing more and more, intensifying our production, while preserving and combating deforestation”, pointed out Fávaro.

At this point, Lula highlighted Brazil's role compared to other nations, with regard to preserving the environment. “No country in the world comes close to Brazil in terms of sustainability. My country has 87% of its energy clean and renewable, compared to 27% for the rest of the world. Instead of wanting to teach Brazil how to do it, they have to learn from Brazil to at least do the same”, observed the president.

Investment

Among the investment programs, Fávaro highlighted the Program for Construction and Expansion of Warehouses (PCA). To finance storage complexes of up to 6 thousand tons, the line will provide R$2,8 billion, at interest of R$7% per year. For larger projects, the program will offer R$3,8 billion, at interest of 8,5% per year. For the minister, the initiative has strategic relevance for agriculture.

“We cannot celebrate a record harvest on top of a record harvest and not build warehouses,” he said. “We will have an 80% increase in resources for complexes of up to 6 thousand tons and 60% for other warehouses”, he noted.

The Minister of Agriculture also emphasized the importance of the Modernization Program for the Fleet of Agricultural Tractors and Associated Implements and Harvesters (Moderfrota). For medium producers – included in Pronamp –, the program will offer R$2,3 billion. For other producers, the financial volume to be released is even greater: R$9,5 billion