Regulation of bioinputs is approved in the Senate

The Federal Senate's Environment Committee (CMA) unanimously approved the bill that regulates bioinputs. Biological inputs are products made from microorganisms, natural plant materials and used in agricultural cultivation systems to combat pests and diseases and improve soil fertility, in addition to the availability of nutrients for plants.

According to the former Minister of Agriculture, Senator Tereza Cristina (PP-MS), the approval keeps the Brazilian agricultural sector in constant modernization. For her, however, the approval of pesticides, later this year, would be essential to continue this process.

“We are talking about modernity. To be complete, the next step is the approval of pesticides, later this month. We will consider the sector with biological and chemical products being used in a current and appropriate way”, he highlighted.

Senator Zequinha Marinho (Podemos-PA), vice-president of the Parliamentary Front for Agriculture (FPA) in the Senate, highlighted that with the approval of bio-inputs, the house is heading towards sustainability. Furthermore, the parliamentarian believes that regulation can help Brazil reduce dependence on fertilizers from abroad.

“Brazilian agriculture is a global protagonist and has enjoyed decades of strength and excellent returns. Still, we live in dependence on some inputs that come from other countries. We need to move towards solving our own problems and we did that today”, he emphasized.

The rapporteur of the matter, senator Veneziano Vital do Rêgo (MDB-PB), stated that the bioinputs project is extremely important for Brazil and agriculture. The senator made a point of thanking Tereza Cristina for the amendments to the text. “We received immense collaboration from the former minister and, I believe, we presented the best possible proposal. It is a fundamental project for the country and the sector”, he concluded.

The project will have to go through a second vote, the so-called supplementary round -- under the terms of art. 282 of the Internal Regulations of the Senate, as per the text below:

Art 282. Whenever a full replacement for a bill, legislative decree or resolution is approved in a single round, it will be submitted to a supplementary round.

§ 1 In projects subject to a processing deadline, the supplementary shift will take place two working days after approval of the substitute, if there are eight days or less left until the end of said period.

§ 2 Amendments may be offered in the supplementary round, during the discussion of the matter, with the presentation of a new full substitute being prohibited.

Art 283. If amendments are offered in the supplementary discussion, the matter will go to the competent committees, which will not be able to complete their opinion with a new substitute.

Single paragraph. In projects subject to a processing deadline, the matter will be included on the Agenda in the next ordinary deliberative session if there are five days or less left until the end of that period, and the opinion may be given in plenary.

Art 284. If no amendments are offered in the supplementary discussion, the substitute will be considered definitively adopted without a vote.

Three types of bioinput producers

The text distinguishes between three types of bioinput producers: commercial biofactories; “on farm” biofactories; and production units. For this division, criteria such as the purpose of the bioinput (whether for personal or commercial use), the scale of production and the risk to the environment were taken into account.

Places that produce or import biological inputs for commercial purposes are called “commercial biofactories”. In a public hearing held last year, a representative of a company in the sector defended the regulatory framework for streamlining the granting of registrations by regulatory bodies for this market.

The project creates other categories for producers who do not seek commercial purposes, that is, who produce for their own consumption. Among them are "on farm" biofactories, in which the multiplication of microorganisms occurs on the property where it will be used as bioinput. It occurs, for example, on farms that prefer to manufacture their own biofertilizers instead of buying more expensive ones at market prices. "On farm" biofactories must exclusively use classified organisms, that is, those that have been identified in the laboratory and previously approved for use. They must also be equipped with equipment and facilities that allow for quality control and health safety.

Finally, the project recognizes “bioinput production units”, also for own consumption, which use naturally occurring organisms with the possibility of complementary use of other products. The text relates this category to smaller producers, such as family farmers.

Entities representing on-farm biofactories and bioinput production units, during the debates held in the Senate on the topic, expressed concern about the rules to be applied to them, which could “bureaucratize” manufacturing for their own consumption.

Different rules

The project provides different rules and requirements for each type of bioinput producer. For commercial biofactories, registration with a federal body responsible for agricultural matters is required for both the establishment and its products. The establishment's record will contain information about the purpose of production, the origin of the biological material used and the characteristics of the bio-inputs that will be produced or imported, among other data.

Commercial biofactories must also present a series of requirements for operation, such as maintaining auditable records of the production process and the obligation to participate in laboratory tests accredited by the Ministry of Agriculture.

As for products from these factories, they must be previously registered with the competent federal agricultural agency, in addition to complying with the requirements of federal health and environmental agencies, according to the type of product and its level of risk.

For on-farm biofactories, a simplified registration of the property with the federal agriculture agency will be required. If the owner has more than one land that produces the bioinput, he must register separately for each location.

They will not need to register the bio-inputs generated in advance, but a future regulation may require the presentation of an accredited technical person. Production can occur individually or in cooperatives and associations.

The trade of bioinputs generated by on farms is prohibited. The text provides for punishments and the obligation to follow the same rules as commercial biofactories.

Bioinput producing units have even more simplified rules. They do not need to register with the government and, in the case of family farming, they also do not need to register or register the bio-inputs generated. The use of quality control equipment will only be required if necessary.

They can develop their production in the form of an association of producers and family farming, such as a rural consortium, agrarian condominium or similar. They must also observe the prohibition on trade, with the same punishments foreseen for on-farm biofactories.

Penalties foreseen

The text provides for five different administrative sanctions for violations of the project text: warning; destruction of the product; suspension of activity, registration or registration; revocation of registration or registration; and fine. The value of the fine can vary from R$100 to R$300 thousand.

Tax incentives

The proposal determines that the Executive promote adjustments in fiscal and tax rules that provide incentives for research, development, production and commercialization of bio-inputs in agriculture. It is also expected that subsidies, exemptions and other economic, financial and tax incentives will be applied to the national industry.

In this case, priority will be given to micro, small and medium-sized companies and family farming cooperatives that produce bioinputs. For example, the National Rural Credit System (SNCR) will apply different interest rates to producers and family farmers who use bioinputs. Traditional communities will also have public policies that will encourage the production of these products.

technical committee

The project establishes a Technical Commission for Bioinputs, of a deliberative and permanent nature, to define the technical parameters that will provide the basis for future regulation and specificities. It will be made up of at least eight employees from federal agencies dealing with agriculture, health and environmental control.

Contrary to the creation of the Commission, Senator Tereza Cristina (PP-MS) suggested removing the body from the project through a suppressive amendment. For her, “another factor of legal uncertainty” could be created. The amendment was rejected by rapporteur Veneziano, who expects, on the contrary, greater efficiency in the rules.

The commission will be subsidized by a Bioinputs Strategic Council, of an advisory and permanent nature. The Council will also assist different sectors responsible for regulating and registering bioinputs.