Lula announces Crop Plan of R$ 364 billion to rural producers – 06/27/2023 – Market

President Lula (PT) will announce this Tuesday (27) that the Crop Plan 2023/2024 will total R$ 364.22 billion to finance the agricultural activity of medium and large producers.

Still this Wednesday (28), Lula will present the volume of resources allocated to rural credit for family farming.

The expectation, according to members of the government, is that the total value of the plan will be between R$ 420 billion and R$ 430 billion – which would represent a record and strong increase in relation to the previous package, which totaled R$ 340.9 billion launched by Jair Bolsonaro (PL) for the 2022/2023 harvest.

At the ceremony at the Planalto Palace this Tuesday, the president will be accompanied by Minister Carlos Fávaro (Agriculture and Livestock). On Wednesday, it will be the turn of Minister Paulo Teixeira (Agrarian Development).

According to the government, the part of the plan launched this Tuesday is 27% greater than that of the previous harvest (R$ 287.16 billion last year).

Interest rates for funding and marketing will be 8% per year for producers included in Pronamp (National Support Program for Medium Rural Producers). For the others, it will be 12% per annum.

For investments, interest rates vary between 7% and 12.5% ​​per annum, according to the program.

Lula also included in the plan an extra reduction for producers who adopt sustainable practices and want to take credit for funding.

The cut is 0.5 percentage points for rural producers who already have the CAR (Rural Environmental Registry) analyzed.

If the producer adopts measures such as organic or agroecological production and bioinputs, he may achieve another 0.5 percentage point reduction in the interest rate.

That is, if you meet both requirements, the drop will be 1 percentage point.