Farmers who want to invest in innovation will be able to count on a special line of credit. The National Monetary Council (CMN) approved this Wednesday (20) a change in the rules for financing innovation and digitalization with resources from the Workers' Support Fund (FAT). The measure expands access to credit for individual entrepreneurs and individuals working in agribusiness, forestry production, fishing and aquaculture. In practice, farmers and workers in these sectors will be able to obtain financing for technological modernization, purchase of machinery and equipment and digitalization of productive activities. The resources are transferred by the FAT to the National Bank for Economic and Social Development (BNDES), which lends the money with subsidized interest rates.
What changes
Prior to the decision, credit operations were restricted to formally organized companies. With the new regulation, individuals and sole proprietors are also now recognized as beneficiaries of the financing lines. The change applies to workers residing and domiciled in Brazil who carry out economic activities related to the following sectors: Agribusiness; Forestry production; Fishing; Aquaculture; and Services directly related to these segments.
How it works
The financing uses resources from the FAT (Workers' Assistance Fund), a fund mainly supplied by contributions from the Social Integration Program (PIS) and the Public Servant's Asset Formation Program (Pasep). The money is transferred to BNDES (Brazilian Development Bank), which operates credit programs focused on productive investment. The operations use the Reference Rate (TR) as a basis for remuneration, which tends to make credit more accessible compared to traditional market modalities. According to the government, the resources can be used for: Acquisition of machinery and equipment; Technological modernization; Digitization of production; Increased productivity; Improvement of working and production conditions. Expected Impacts The government's assessment is that the measure can stimulate the production and marketing of agricultural machinery and technological equipment, as well as benefit manufacturers, distributors, and service providers. The expectation is also for job creation, increased income, and strengthening of economic activity in the regions served. The government also argues that technological modernization can improve the efficiency of rural production and increase the sector's competitiveness.
Who makes up the CMN?
The National Monetary Council is the main body responsible for defining the guidelines for the country's monetary, exchange rate, and credit policies. Currently chaired by the Minister of Finance, Dario Durigan, the CMN also includes the President of the Central Bank, Gabriel Galípolo, and the Minister of Planning and Budget, Bruno Moretti.
This text was translated by machine from Brazilian Portuguese.