IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: No inception date

State loan

On August 15, 2013, the Brazilian National Development Bank (BNDES) and the Funding Authority for Studies and Projects (FINEP) announced a new program that incentivizes R&D in the agricultural sector, excluding sugar cane related goods. Under the INOVA Agro program, Brazilian agricultural companies can apply for subsidised financing for their R&D projects. This program defines companies that produce agricultural goods, agrochemical components, improves animal health, improves food quality and its preservation time, or agricultural equipment and its storage to fit under INOVA Agro's program. The total funds available for INOVA Agro are R$ 1 billion (USD 427 million).

Only companies that are based in Brazil may apply for these benefits and the financed projects must be undertaken on Brazilian territory. Companies that wish to apply must have revenues of over R$ 16 million or partner with a technological company which passes this revenue requirement. Furthermore, projects must have a minimum value of R$ 10 million in order to qualify. The interested companies must receive approval by the BNDES and the FINEP in order to benefit from the program. The BNDES and FINEP may finance up to 90% of the projects' total cost.

The Brazilian government, alongside with the Brazilian National Development Bank (BNDES) and the Funding Authority for Studies and Projects (FINEP), run and finance the program "INOVA firms". Originally launched in 2013, this program's main goal is to innovate new technologies and make Brazilian companies more competitive. The program achieves this by targeting new sectors through time and giving their companies temporal benefits by 1) financing R&D, 2) financing companies directly as shareholders, or 3) providing loans at subsidised interest rates. Involved governmental entities may also guarantee future demand for their goods in some cases. Sectoral programs are launched at the discretion of BNDES and last for a predetermined period of time where companies may apply. 

AFFECTED COUNTRIES

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TABLE
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AFFECTED SECTORS AND PRODUCTS

011 Cereals
012 Vegetables
013 Fruits & nuts
014 Oilseeds & oleaginous fruits
015 Edible roots & tubers with high starch or inulin content
016 Stimulant, spice & aromatic crops
017 Pulses (dried leguminous vegetables)
019 Forage; natural rubber; living plants; raw vegetable materials
021 Live animals
022 Raw milk
023 Eggs of hens or other birds in shell, fresh
029 Other animal products
211 Meat & meat products
213 Prepared & preserved vegetables, pulses & potatoes
214 Prepared & preserved fruits & nuts
215 Animal fats
216 Vegetable oils
217 Margarine & similar preparations
221 Processed liquid milk, cream & whey
222 Other dairy products
223 Eggs, in shell, preserved or cooked
231 Grain mill products
232 Starches & starch products; sugars & sugar syrups n.e.c.
233 Preparations used in animal feeding; lucerne meal & pellets
234 Bakery products
235 Sugar & molasses
236 Cocoa, chocolate & sugar confectionery
237 Macaroni, noodles, couscous & similar farinaceous products
239 Food products n.e.c.
441 Agricultural or forestry machinery & parts

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