Government regulates 35,2% discount on financing for producers affected by drought

The federal government authorized the granting of a rebate (discount) of 35,2% on the value of installments of rural credit operations contracted within the scope of the National Program for Strengthening Family Agriculture (Pronaf) for rural producers harmed by drought or drought in the states of Mato Grosso do Sul, Paraná, Santa Catarina and Rio Grande do Sul. Decree 11.029/2022 provides for the granting of the rebate.

The rebate is valid for installments of rural funding and investment credit operations due and falling due in the period from January 1st to July 31st, 2022. The operations must have been contracted by December 31st, 2021 and be in compliance status or regularized by July 31, 2022. Another requirement is that the producer must register a Pronaf Aptitude Declaration (DAP) or register with the National Family Farming Registry (CAF).

Last Wednesday (30/3), the government opened an extraordinary credit of R$ 1,2 billion to grant discounts on Pronaf contracted operations. The measure was requested by the Ministry of Agriculture, Livestock and Supply after visiting the affected regions, listening to the sector's demands and negotiating with the government's economic area.

According to the decree, in the event of non-payment after granting the rebate, the remaining balance of the operation or installment may be extended if there is a loss of revenue in the linked enterprises, due to drought or drought equal to or greater than 35% of gross revenue. expected. Settlement with the rebate will not be valid for operations covered by the Agricultural Activity Guarantee Program (Proagro) or with rural insurance coverage.

To read the decree, click here.