BNDES secures BRL 50 billion in credits for agriculture in 2023

Agribusiness

The investment exceeds by more than 50% the resources allocated by the institution to agribusiness in 2022.

Contracting of new credit operations. Creation of a new line indexed to the dollar with a fixed and long-term interest rate. Record resources for the Safra Plan and for family farming, in addition to investments for 250,000 families in the northeastern semi-arid region to advance in agricultural practices and water security.

Among the various actions of the National Bank for Economic and Social Development (BNDES) in these first six months of management, there are already R$ 50 billion guaranteed to agribusiness and family farming in 2023, resources to boost the sector and support the adoption of increasingly increasingly sustainable in the production chain. The investment announced by the bank exceeds by more than 50% the resources allocated by the institution to agribusiness in 2022.

“Brazil is the fifth largest emitter of greenhouse gases on the planet. Half is deforestation and burning. And 24% come from the countryside. We can produce more and more without deforesting, without destroying, preserving and showing the world that, in addition to efficient, modern agriculture, which feeds the planet, we contribute to combating the greenhouse effect. We want precision, sustainable agriculture, and that is what the BNDES is investing in,”

said the president of the BNDES, Aloizio Mercadante.

BRL 11.5 BI – The first step was to reactivate credit lines for agribusiness that were closed when the new board took office at the BNDES, in February. In the first month of the new management, R$ 2.9 billion were offered to the sector with the reopening of protocols and contracting of new credit operations.

Subsequently, the BNDES announced R$ 4 billion in a new dollar-indexed line with a fixed interest rate of up to 8.06% and a total term of up to 120 months, with a grace period of up to 24 months. Aimed at the agribusiness sector that has receivables in dollars, the initiative aims at building and expanding warehouses, irrigation works, training and recovery of pastures, generation and distribution of energy from renewable sources and environmental regularization of the property. In addition, the bank announced, at the beginning of June, during the opening of Bahia Farm, new resources for agriculture in a total of R$ 3.6 billion.

family farming

Taking into account all the lines within the Safra/Safrinha Plan 2023/2024, including resources destined to family agriculture, business agriculture and free resources, the BNDES reserved R$ 38.4 billion in credits, an amount 55% higher than last year. Family farming gained prominence and attention. The volume offered was increased by 103%, from BRL 5.7 billion in 2022/2023 to BRL 11.6 billion in 2023/2024. The bank also set aside BRL 14.8 billion for corporate agriculture, growth of 33%.

In addition, the BNDES approved, together with the UN International Fund for Agricultural Development (IFAD), non-refundable support in an amount that could reach R$ 1 billion so that 250 thousand families of family farmers in the northeastern semi-arid region receive investments in agricultural practices and safety water.

Harvest Plan

At the end of June, President Luiz Inácio Lula da Silva launched the 2023/2024 Crop Plan, whose values ​​reached the highest level in history. R$ 364.2 billion in credit will be made available for financing, an amount that represents an increase of 27% compared to last year. With this, the Federal Government encourages the adoption of sustainable agricultural practices, competitive interest rates and boosts the Brazilian potential to maintain agribusiness as one of the main vectors of the national economy.

The project, known as “Sowing Climate Resilience in Rural Communities in the Northeast”, aims to increase food security and promote mitigation and adaptation to the effects of climate change in the region.

According to projections, the resources should directly impact one million people in an area of ​​approximately 84,000 hectares, restoring degraded ecosystems with potential for providing environmental services.

21,000 cisterns and 16,000 units for the treatment and reuse of domestic wastewater will be implemented, as well as seven national and international routes (Latin America and Africa) for exchange between farmers from similar biomes. It is estimated to reduce carbon emissions by approximately 11 million tons of CO2.

*With advisory information

Read more:

Pix growth drives the Brazilian economy

Government seeks support from agribusiness for approval of Tax Reform

Maintaining high interest rates could prevent an improvement in the economy, say entities