ANNOUNCEMENT 17 Jun 2021

The Government of Brazil launched the 2021/2022 Agricultural and Livestock Plan approving different subsidies to farmers. The total budget for the 2021/2022 Plan was increased from BRL 236.3 billion (over USD 47 billion) to BRL 251,2 billion (ca. USD 50 billion).

The new resources will be available for the period lasting between 1 July 2021 and 30 June 2022.

NUMBER OF INTERVENTIONS

9

  • 6 harmful
  • 0 neutral
  • 3 liberalising

SOURCE

Ministry of Agriculture, Livestock and Farming. Ministério da Agricultura, Pecuária e Abastecimiento. Assuntos. Política Agrícola. Plano Safra 2021/2022. Um Plano Safra Mais Verde de 17/06/2021 (Retrieved on 26/07/2021). https://www.gov.br/agricultura/pt-br/assuntos/politica-agricola/plano-safra/2021-2022/um-plano-safra-mais-verde

Ministry of Agriculture, Livestock and Farming. Ministério da Agricultura, Pecuária e Abastecimiento. Notícias. Plano Safra 21/22 aumenta recursos para técnicas agrícolas sustentáveis de 23/06/2021. https://www.gov.br/pt-br/noticias/agricultura-e-pecuaria/2021/06/plano-safra-21-22-aumenta-recursos-para-tecnicas-agricolas-sustentaveis

Ministry of Agriculture, Livestock and Farming. Ministério da Agricultura, Pecuária e Abastecimiento. Assuntos. Política Agrícola. Plano Safra. 2021/2022. Material para imprensa. Apresentação Plano Safra 2021/2022 (Retrieved on 26/07/2021). https://www.gov.br/agricultura/pt-br/assuntos/politica-agricola/plano-safra/2021-2022/material-para-imprensa/apresentacao-plano-safra-2021-2022-1.pdf/view

Ministry of Agriculture, Livestock and Farming. Ministério da Agricultura, Pecuária e Abastecimiento. Assuntos. Política Agrícola. Plano Safra 2021/2022. Investimentos de 17/06/2021. (Retrieved on 26/07/2021). https://www.gov.br/agricultura/pt-br/assuntos/politica-agricola/plano-safra/2021-2022/investimentos

Ministry of Agriculture, Livestock and Farming. Ministério da Agricultura, Pecuária e Abastecimiento. Assuntos. Seguro Rural. (Retrieved on 18/08/2021). https://www.gov.br/agricultura/pt-br/assuntos/riscos-seguro/seguro-rural/seguro-rural

Inception date: 01 Jul 2021 | Removal date: 30 Jun 2022

Localisation incentive

On 17 June 2021, the Ministry of Agriculture, Livestock and Farming of Brazil decreased the total resources allocated to the Moderfrota scheme from BRL 9 billion (ca. USD 1.8 billion) to BRL 7.53 billion (ca. USD 1.5 billion). This programme is managed by the BNDES and provides credit lines to finance the acquisition of tractors, harvesters, cutting platforms, sprayers, planters, seeders and equipment, both to rural producers and to cooperatives. The new resources will be available for the period lasting between 1 July 2021 and 30 June 2022.

Beneficiaries of this scheme can get loans of up to 85% of the total costs of the products with a term of up to 7 years and a 14-months grace period. The interest rate of these loans is set at 8.5%. Rural producers include both legal and natural persons whose main activity is related to farming including agriculture, livestock and fish farming.

The Moderfrota scheme is part of the annual Agricultural and Livestock Plan presented by the Brazilian government every year with the objective to support local farmers. The plan includes different supports including credit lines, production subsidies, and interest payment subsidies (see related interventions). Every year, the number of schemes and the total resources allocated to this program varies (please, see related state acts). Notably, in the 2021/2022 edition, the government allocated a total budget of BRL 251.22 billion (ca. USD 50 billion).

 

AFFECTED SECTORS

 
Inception date: 01 Jul 2021 | Removal date: 30 Jun 2022

State loan

On 17 June 2021, the Ministry of Agriculture, Livestock and Farming of Brazil increased the total resources allocated to the Moderagro scheme from BRL 1.2 billion (ca. USD 239 million) to BRL 1.89 billion (over USD 376 million). This programme is managed by the BNDES and provides credit lines for the incorporation of technological innovations in rural properties -i.e. farms, aiming at increasing productivity and improving management. The new resources will be available for rural producers and cooperatives for the period lasting between 1 July 2021 and 30 June 2022.

Beneficiaries of this scheme can get loans of up to BRL 880,000 with a term of up to 10 years and a 3-months grace period. The interest rate of these loans is set at 7.5%. Rural producers include both legal and natural persons whose main activity is related to farming including agriculture, livestock and fish farming.

The Moderagro scheme is part of the annual Agricultural and Livestock Plan presented by the Brazilian government every year with the objective to support local farmers. The plan includes different supports including credit lines, production subsidies, and interest payment subsidies (see related interventions). Every year, the number of schemes and the total resources allocated to this program varies (please, see related state acts). Notably, in the 2021/2022 edition, the government allocated a total budget of BRL 251.22 billion (ca. USD 50 billion).

 
 
N/A
Inception date: 01 Jul 2021 | Removal date: 30 Jun 2022

State loan

On 17 June 2021, the Ministry of Agriculture, Livestock and Farming of Brazil increased the total resources allocated to the Agricultural Carbon Reduction Program (i.e. ABC by its acronym in Portuguese) from BRL 2.1 billion (ca. USD 418 million) to BRL 5.05 billion (over USD 1 billion). This programme provides credit lines to promote environmentally sustainable crops by investing in new technologies and promoting electricity conversion. The new resources will be available for the period lasting between 1 July 2021 and 30 June 2022.

The resources allocated via this scheme are available for farmers to be used to build and create bio-fertilizer production units for personal use, the development and implementation of projects related to the conservation of natural resources including soil acidity and fertility, the adoption of technology to increase biogas production as well as the generation of renewable energy. 

Beneficiaries of this scheme can get loans of up to BRL 20 million with a term of up to 12 years and an 8-years grace period. The annual interest rate of these loans is set between 5.5% and 7% depending on the project.

The ABC scheme is part of the annual Agricultural and Livestock Plan presented by the Brazilian government every year with the objective to support local farmers. The plan includes different supports including credit lines, production subsidies, and interest payment subsidies (see related interventions). Every year, the number of schemes and the total resources allocated to this program varies (please, see related state acts). Notably, in the 2021/2022 edition, the government allocated a total budget of BRL 251.22 billion (ca. USD 50 billion).

 
N/A
Inception date: 01 Jul 2021 | Removal date: 30 Jun 2022

State loan

On 17 June 2021, the Ministry of Agriculture, Livestock and Farming of Brazil increased the total resources allocated to the PCA scheme from BRL 1.82 billion (over USD 362.2 million) to BRL 4.12 billion (over USD 820 million). This programme provides credit lines to agricultural producers to finance the extension and construction of new warehouses. The new resources will be available for rural producers and cooperatives the period lasting between 1 July 2021 and 30 June 2022.

Beneficiaries of this scheme can get loans of up to BRL 25 million with a term of up to 12 years and a 3-years grace period. The annual interest rate of these loans is set between 5.5% and 7% depending n the project. Rural producers include both legal and natural persons whose main activity is related to farming including agriculture, livestock and fish farming.

The PCA scheme is part of the annual Agricultural and Livestock Plan presented by the Brazilian government every year with the objective to support local farmers. The plan includes different supports including credit lines, production subsidies, and interest payment subsidies (see related interventions). Every year, the number of schemes and the total resources allocated to this program varies (please, see related state acts). Notably, in the 2021/2022 edition, the government allocated a total budget of BRL 251.22 billion (ca. USD 50 billion).

 
 
N/A
Inception date: 01 Jul 2021 | Removal date: 30 Jun 2022

State loan

On 17 June 2021, the Ministry of Agriculture, Livestock and Farming of Brazil increased the total resources allocated to the Inovagro scheme from BRL 1.5 billion (over USD 298.5 million) to BRL 2.6 billion (ca. USD 517.5 million). This programme is managed by the BNDES and provides credit lines to rural producers and cooperatives for the incorporation of technological innovations in rural properties -i.e. farms, aiming at increasing productivity and improving management. The new resources will be available for the period lasting between 1 July 2021 and 30 June 2022.

Beneficiaries of this scheme can get loans ranging between BRL 1.3 and BRL 3.9 million with a term of up to 10 years and a 3-years grace period. The interest rate of these loans is set at 7%. Rural producers include both legal and natural persons whose main activity is related to farming including agriculture, livestock and fish farming.

The Inovagro scheme is part of the annual Agricultural and Livestock Plan presented by the Brazilian government every year with the objective to support local farmers. The plan includes different supports including credit lines, production subsidies, and interest payment subsidies (see related interventions). Every year, the number of schemes and the total resources allocated to this program varies (please, see related state acts). Notably, in the 2021/2022 edition, the government allocated a total budget of BRL 251.22 billion (ca. USD 50 billion).

 
N/A
Inception date: 01 Jul 2021 | Removal date: 30 Jun 2022

State loan

On 17 June 2021, the Ministry of Agriculture, Livestock and Farming of Brazil increased the total resources allocated to the Pronamp Program from BRL 2.72 billion (ca. USD 541.4 million) to BRL 4.88 billion (ca. USD 971.3 million). This scheme provides credit lines to rural producers and cooperatives to finance costs or to finance investments. The new resources will be available for the period lasting between 1 July 2021 and 30 June 2022.

Beneficiaries of this scheme can get loans of up to BRL 430,000 with a term of up to 8 years and a 3-years grace period. The annual interest rate of these loans is set at 6.5%. Rural producers include both legal and natural persons whose main activity is related to farming including agriculture, livestock and fish farming.

The Pronamp Programme is part of the annual Agricultural and Livestock Plan presented by the Brazilian government every year with the objective to support local farmers. The plan includes different supports including credit lines, production subsidies, and interest payment subsidies (see related interventions). Every year, the number of schemes and the total resources allocated to this program varies (please, see related state acts). Notably, in the 2021/2022 edition, the government allocated a total budget of BRL 251.22 billion (ca. USD 50 billion).

 
 
N/A
Inception date: 01 Jul 2021 | Removal date: 30 Jun 2022

Production subsidy

On 17 June 2021, the Ministry of Agriculture, Livestock and Farming of Brazil decreased the total resources allocated to the Rural Insurance Programme from BRL 1.3 billion (over USD 258.7 million) to BRL 1 billion (over USD 199 million). This scheme subsidizes between 20% and 40% of the insurance risk premium depending on the insured product. The new resources will be available for the period lasting between 1 July 2021 and 30 June 2022. 

The scheme applies to rural producers and cooperatives involved in agricultural, livestock and fish farming activities.  

The Rural Insurance Programme is part of the annual Agricultural and Livestock Plan presented by the Brazilian government every year with the objective to support local farmers. The plan includes different supports including credit lines, production subsidies, and interest payment subsidies (see related interventions). Every year, the number of schemes and the total resources allocated to this program varies (please, see related state acts). Notably, in the 2021/2022 edition, the government allocated a total budget of BRL 251.22 billion (ca. USD 50 billion).

 
 
N/A
Inception date: 01 Jul 2021 | Removal date: 30 Jun 2022

State loan

On 17 June 2021, the Ministry of Agriculture, Livestock and Farming of Brazil launched the Proirriga Programme. This scheme counts with a total budget of BRL 1.35 billion (ca. USD 268.7 million) to provide credit lines to support irrigated farming. The new resources will be available for the period lasting between 1 July 2021 and 30 June 2022.

Beneficiaries of this scheme can get loans ranging between BRL 3.3 and 9.9 million with a term of up to 10 years and a 3-years grace period. The annual interest rate of these loans is set at 7.5%.

The Proirriga Programme is part of the annual Agricultural and Livestock Plan presented by the Brazilian government every year with the objective to support local farmers. The plan includes different supports including credit lines, production subsidies, and interest payment subsidies (see related interventions). Every year, the number of schemes and the total resources allocated to this program varies (please, see related state acts). Notably, in the 2021/2022 edition, the government allocated a total budget of BRL 251.22 billion (ca. USD 50 billion).

 
 
N/A
Inception date: 01 Jul 2021 | Removal date: 30 Jun 2022

State loan

On 17 June 2021, the Ministry of Agriculture, Livestock and Farming of Brazil decreased the total resources allocated to the Moderfrota scheme from BRL 9 billion (ca. USD 1.8 billion) to BRL 7.53 billion (ca. USD 1.5 billion). This programme is managed by the BNDES and provides credit lines to both rural producers and to cooperatives. The objective of the lines is to help them finance the acquisition of tractors, harvesters, cutting platforms, sprayers, planters, seeders and equipment that are locally manufactured. The new resources will be available for the period lasting between 1 July 2021 and 30 June 2022.

Beneficiaries of this scheme can get loans of up to 85% of the total costs of the products with a term of up to 7 years and a 14-months grace period. The interest rate of these loans is set at 8.5%.

The Moderfrota scheme is part of the annual Agricultural and Livestock Plan presented by the Brazilian government every year with the objective to support local farmers. The plan includes different supports including credit lines, production subsidies, and interest payment subsidies (see related interventions). Every year, the number of schemes and the total resources allocated to this program varies (please, see related state acts). Notably, in the 2021/2022 edition, the government allocated a total budget of BRL 251.22 billion (ca. USD 50 billion).

 
N/A