LCA and CPR remain strong in private financing of agriculture

The Agribusiness Letter of Credit (LCA) stocks once again performed favorably, at R$420,80 billion in June this year, an increase of 58% compared to the same month last year. The updated value was recorded in the Private Agricultural Finance Bulletin, produced by the Agricultural Policy Secretariat of the Ministry of Agriculture and Livestock (Mapa), with data for the month of June. The bulletin is updated monthly with the performance of the main private fundraising instruments for financing agribusiness production chains.

The numbers also reveal a significant growth in stocks of Rural Product Certificates (CPR), 65%, or almost R$ 260 billion, and Investment Funds in Agribusiness Production Chains (Fiagro), 212% or R$ 15,60 billion.

Accumulated CPR records in the current 2022/2023 harvest, from July to June, total R$272,73 billion, a value 56% higher than that recorded in the same period of the last harvest.

The balance of contracts for the Agribusiness Receivables Certificate (CRA), 42%, and the Agribusiness Credit Rights Certificate (CDCA), 30%, also remain positive, in line with the trend seen in recent years.

As a new feature, the bulletin now presents data on the distribution of the number of Rural Credit contracts with LCA source by segment of Financial Institution. According to the Central Bank of Brazil, public banks account for the largest share, 72%. Private banks and credit cooperatives accumulate around 27% of participation in rural credit contracts with the LCA source.