Minister Fávaro seeks legal security for agriculture with the CNJ and AGU

The Minister of Agriculture and Livestock, Carlos Fávaro, met with the National Inspector of Justice, Minister Luís Felipe Salomão, and the Attorney General of the Union, Jorge Messias, at the headquarters of the National Council of Justice (CNJ), to discuss the legal security for agriculture from a systemic perspective of the sector.

Faced with the challenges experienced by rural producers in recent years as a result of prolonged droughts and intense rains caused by adverse weather conditions, impacting the cost of production and also the drop in international prices, the Ministry of Agriculture and Livestock (Mapa) has been working on initiatives to modernization of rural credit and risk management.

Along these lines, one of the proposals presented by Fávaro was, within the independence of the Powers, the support of the CNJ to guide the adoption of the criteria provided for in the Judicial Recovery and Bankruptcy Law in relation to the provisions of Law no. 14.112/2020.

“What worries the Ministry is the functioning of agribusiness in a systemic way”, commented the National Inspector of Justice. This is because there is concern about the use and interpretation of legal provisions relating to judicial recoveries and bankruptcies.

“Judicial recovery is a legitimate, important instrument, and cannot be trivialized”, considered the Minister of Agriculture and Livestock. Among the points addressed to guarantee security and legal stability in relation to the topic, are the requirements for rural producers who operate as Individuals to be able to access Judicial Recovery, such as the regular exercise of their activities for a period exceeding two years, the presentation of the Rural Producer's Digital Cash Book (LCDPR), Personal Income Tax Declaration (DIRPF) and balance sheet, all delivered in a timely manner.

Furthermore, the obligations arising from acts carried out between cooperative members and cooperatives are not subject to Judicial Recovery; o credits linked to Rural Product Certificates (CPRs) with physical settlement, those in which the producer pays off the debt by delivering part of his production, except when proven that the product was not harvested specifically due to a climate catastrophe and also in cases of fiduciary alienations , when it is a creditor holding the position of owner of movable or immovable property, a commercial lessor, owner or prospective seller of property whose respective contracts contain an irrevocability or irreversibility clause, including in real estate developments, or an owner in a sales contract with domain reservation.