Rural credit contracts for the 2019/2020 harvest total R$93,5 billion

The value of rural credit operations contracted in the first four months of the 2019/2020 harvest (July to October) was R$93,5 billion, representing an increase of 6% compared to the last harvest (2018/2019). Costing operations totaled R$54,1 billion (+5%), investment, R$23,2 billion (+16%), commercialization, R$9,9 billion (-22%) and industrialization, R $6,1 billion (+61%).

The numbers are part of the Agricultural Financing Balance for the 2019/2020 Harvest, released this Monday (10) by the Agricultural Policy Secretariat (SPA) of the Ministry of Agriculture, Livestock and Supply (Mapa), based on data from the Operations of Rural Credit and Proagro (Sicor), of the Central Bank. 

Rural credit contracts by medium producers, within the scope of Pronamp (National Support Program for Medium Rural Producers), had a sharp increase in the current harvest compared to the previous one, reaching R$ 12,58 billion in funding (+33%) and R$1,27 billion in investment (+41%).

In family farming, this financing amounted to R$7,97 billion in funding (+12%) and R$6,69 billion (+25%) in investment.

Agricultural financing operations with free, uncontrolled resources expanded sharply, rising from R$18 billion in the last harvest to R$21,24 billion in the current harvest. This increase is explained by the contribution of resources from rural savings and the LCA (Agribusiness Credit Letter), whose mandatory allocation to credit is part of the effort to diversify sources of agricultural financing. The use of resources from the LCA source in the current harvest reached R$ 12,24 billion, an increase of 12%, and in the contractions for funding this increase was 28%, standing at R$ 6,8 billion.

According to SPA/Mapa, the increase in demand for resources in the current harvest, especially for investments, within the scope of BNDES programs, managed by Mapa, results from the level of confidence of rural producers and market prospects for the current harvest. .

The investment programs whose hiring had the greatest increase were Inovagro - Incentive Program for Technological Innovation in Agricultural Production (+85%), the ABC Program - Low Carbon Emission Agriculture (+60%) and Moderagro - Program for Modernization of Agriculture and Conservation of Natural Resources (+53%), in addition to the PCA - Program for Construction and Expansion of Warehouses (+51%). In aggregate, investment financing increased by 16%, standing at R$23,22 billion.