Private finance records increase in hiring in agriculture in May

In the current 2022/23 harvest, from July to April, the accumulated records of the Rural Product Certificate (CPR) already total R$218,91 billion, a value 66% higher than the same period in the last harvest. The data appears in the May edition of the Private Agricultural Finance Bulletin, published by the Ministry of Agriculture and Livestock.

“The CPR is a very versatile title that allows rural producers to obtain financial resources or inputs for their production directly from trading companies, resellers, industries, cooperatives, financial institutions, among others”, assesses the director of Financing Policy for the Agricultural Sector, Wilson Vaz de Araújo.

There is also growth in the stock of resources from these financing instruments. The performance of the Agribusiness Letter of Credit (LCA) continues to be strong, with a stock close to R$400 billion, currently being considered the main source of free resources for Rural Credit.

According to current regulations, considering current LCA stocks, banks would need to reapply in Rural Credit the equivalent of at least R$40,96 billion with LCA resources. However, given the high demand for financial resources, in the 2022/23 harvest alone, financing from the LCA source, especially for large producers, already represents R$73,53 billion, almost double.