Half of the resources programmed for the 2019/2020 Harvest Plan have already been used

Approximately half of the resources programmed for the 2019/2020 Harvest Plan have already been used, in the period from July to December last year, that is, R$ 108,5 billion, of which R$ 28,5 billion in investment operations and R $80 billion in funding, marketing and industrialization operations.

The numbers are part of Agricultural Financing Balance Sheet for the 2019/2020 Crop, released on Monday (06/01) by the Agricultural Policy Secretariat (SPA) of the Ministry of Agriculture, Livestock and Supply (Mapa), based on data from the Rural Credit and Proagro Operations System (Sicor), from Central bank.

Cost financing, which accounted for more than half of total rural credit contracts in the same period of the current harvest, increased by 5%, reaching R$61,3 billion. Of this total, R$ 14,2 billion came under the National Support Program for Medium Rural Producers (Pronamp), the increase of which was 37%, concentrated in the contribution of mandatory resources from demand deposits.

In relation to investment contracts, the increase was 19%, and within the scope of Pronamp, which reached R$ 1,47 billion, this expansion was 49%, led by the use of resources from equalized rural savings and mandatory resources , whose access was fully released to medium producers, within the scope of this program.

With the exception of the Program for Modernizing the Fleet of Agricultural Tractors and Associated Implements and Harvesters (Moderfrota) and the Cooperative Development Program for Adding Value to Agricultural Production (Prodecoop), the other investment programs, which have economic subsidies, showed a marked growth, with emphasis on the Program to Incentive Technological Innovation in Agricultural Production (Inovagro) (61%), Pronamp (49%), Program to Reduce Greenhouse Gas Emissions in Agriculture (ABC) (42%) and the Warehouse Construction and Expansion Program (PCA) (42%).

In order to adapt the availability of equalizable resources to the demand observed in investment programs, the National Treasury, on the initiative of Mapa, authorized the relocation of these resources, especially investment costs, in order to ensure continuity of service to rural producers. 

They benefited from additional resources, especially the National Program for Strengthening Family Agriculture (Pronaf), Pronamp, the ABC Program and the PCA Program. Pronaf received an additional R$874 million and Pronamp, an increase of R$614 million.

According to the director of Financing and Information at SPA/Mapa, Wilson Vaz de Araújo, “demands for rural credit resources continue to increase as expected and the relocations carried out last December will be sufficient to meet demand”.

Rural credit contracts, with resources from controlled sources, increased 5%, and 14% with resources from uncontrolled sources, which stood at R$ 26,2 billion, of which R$ 15,2 billion came from the issuance of LCA (Agribusiness Letter of Credit). This performance resulted from the reduction in the inflation rate and the Selic rate, which made it possible to expand rural producers' access to free resources.