Soybean and corn producers will be able to extend agricultural investment installments

During a meeting with representatives from Aprosoja Brasil to discuss solutions to the income crisis in the countryside, the Minister of Agriculture, Carlos Fávaro, announced the extension of this year's investment installments for soybean and corn producers, one of the association's demands.

The minister and his team stated that they have already agreed technical details with the Ministry of Economy and that the vote to issue the resolution must be considered at the next meeting of the National Monetary Council (CMN), which should take place by the end of March.

According to him, the resolution should serve producers of activities that are facing the most serious problems, including soybeans, corn and dairy and beef cattle farming. The form of extension will depend on the number of installments due. The minister also stated that today there is already a limit of 8% of the credit portfolio that banks can reprogram without the need for resolution to serve states or cultures that are not covered.

Regarding the extension of crop funding installments and resources from the Constitutional Funds, although it cannot yet be announced, the minister added that the measure is being prepared by his team and the Government. Likewise, Fávaro is expected to leave this month.

Aprosoja Brasil had already requested a suspension of the due date of installments for 180 days to prevent producers from defaulting. According to President Antônio Galvan, even producers who did not experience harvest frustration are also having problems paying financing due to the drop in prices paid for soybeans and corn.

“The price paid today for the product does not cover the production cost and the payment of investments. We will look for this extension of installments based on the Rural Credit Manual. Even though in many cases they are not public resources, everyone who finances Brazilian agriculture knows that the risks are very high. And we strongly ask that the Ministry promote a change in agricultural insurance itself, which has been questioned for many years and does not meet our needs,” he stated.

While waiting for the National Monetary Council's resolution to be issued, the entity advises producers to contact their bank branch, providing the necessary documents and submit a request for extension of installments that they are unable to honor.

“Our guidance is for the producer not to let the installment expire, but to go to his bank branch immediately and request the extension of these installments by presenting a report proving the harvest frustration, as provided for in the Rural Credit Manual. And if you have difficulty with the bank's management in delivering the order, let Aprosoja know and we will hold the bank's management accountable as to why they are not complying with the Credit Manual”, he warned.

Aprosoja presidents and directors from the states of Paraná, Mato Grosso do Sul, São Paulo, Minas Gerais, Goiás, Piauí, Bahia and Tocantins participated in the meeting. Also accompanying were Secretary of Agricultural Policy Neri Geller, Special Advisor Carlos Ernesto Augustin and Secretary of Agricultural Defense Carlos Goulart.

Agriculture Committee

The Aprosoja Brasil delegation also met with the new president of the Agriculture Committee of the Federal Chamber, deputy Vicentinho Jr (Progressistas – TO) to discuss solutions to the debt problem.

The parliamentarian committed to holding meetings with minister Carlos Fávaro and other authorities involved and putting on the committee's agenda, next week, not only the public debate on the crisis, but the construction of legislative proposals.

Bank of Brazil

Aprosoja representatives then met with the vice-presidency of agribusiness at Banco do Brasil. On the occasion, BB executives highlighted that they are already proposing part of the demands presented by Aprosoja to the Government.

BB is also awaiting the CMN Resolution and will guide bank agencies to proceed with the extension of outstanding installments, according to the producer's payment capacity, based on the Rural Credit Manual.