Desenrola Rural seeks to regularize the debts of family farmers

The acting minister of the Ministry of Agrarian Development and Family Farming (MDA), Fernanda Machiaveli, met this week in Brasília with representatives from the Ministry of Finance (MF) and Banco do Brasil (BB) to move forward with the technical cooperation agreement for the formulation of the Rural Development Program. This is an important milestone in the quest to regularize rural debts of family farmers who are in the Active Debt of the Union (DAU), originating from rural credit operations of the National Program for Strengthening Family Farming (Pronaf).

One of the highlights of the meeting was the presentation of a preliminary diagnosis on the indebtedness of family farmers, facilitating the sharing of data and coordinating actions to assess the needs for services to resolve these issues.

Debt renegotiation

With the program, the Federal Government plans to regularize these debts, focusing on beneficiaries of the National Agrarian Reform Program (PNRA) and Family Farmers with an annual gross income of up to R$50. A significant portion of this public has Pronaf debts registered in the Federal Government's Active Debt (DAU).

Eligible Family Farmers with this Pronaf debt profile will be able to make a 5% down payment, payable in up to five installments. The remainder can be paid with staggered discounts of up to 70% of the consolidated debt.

Next Steps

The MDA is expected to launch a comprehensive program to regularize family farmers’ debts by the end of 2024. The initiative also includes outreach and guidance actions to ensure that farmers are aware of the renegotiation conditions and how to access regularization tools. The support of Technical Assistance and Rural Extension (ATER) entities, unions, and social movements will be crucial to assist beneficiaries in the process of adhering to the program’s conditions.