CNA advises producers on debt renegotiation.

The Confederation of Agriculture and Livestock of Brazil (CNA) released a document with details and information that will help rural producers organize themselves for the new rules contained in the Provisional Measure (MP 1,376) on rural debts. Published on Wednesday (15), the MP authorizes the contracting of credit lines to settle or amortize rural debts and Rural Product Certificates (CPRs) of producers affected by crop losses, extreme weather events or a drop in agricultural prices. Technical Statement (CT) from CNA For example, it provides detailed information from the Provisional Measure regarding who can access the credit lines, which debts can be included, deadlines, and alerts rural producers to organize and gather documents about their losses. Who can access – According to the Confederation's document, the following can access the credit lines: – rural producers; – agricultural production cooperatives, in the condition of rural producer; – with losses in at least two harvests between 2019 and 2025; – with a minimum reduction of 30% in expected gross income. And producers must always present proof "by a report from a qualified professional". Debts – The debts that can be included are the following: – production costs, marketing and industrialization; – installments of investments due or due until 12/31/2026; – renegotiated or extended operations; – CPRs with financial settlement issued in favor of financial institutions. Justification – In analyzing the Provisional Measure, the Confederation states in its press release that producers may justify losses incurred due to extreme weather events, such as flash floods, flooding, hailstorms, heavy rains, tornadoes, cold waves, frosts, gales, droughts, or reduced prices for agricultural products. Deadline – The Provisional Measure establishes a deadline of up to 120 days after publication for contracting the lines of credit, which corresponds to November 12, 2026. The actual opening of contracts will depend on regulation and the availability of resources. Conditions – Under general conditions, producers eligible for Pronaf may contract up to R$ 400,000, with interest rates of 6% per year and a term of up to eight years. For Pronamp, the limit is up to R$ 2 million, with interest rates of 9% per year and a term of up to eight years. For other producers, the limit reaches R$ 4 million, with interest rates of 12% per year and a term of up to eight years. The statement details that exceptional conditions are foreseen for producers with climate-related losses in at least three harvests and a minimum reduction of 40% in expected gross agricultural income. Under Pronaf (National Program for Strengthening Family Farming), the limit will be up to R$ 500,000, with interest rates of 5% per year and a term of up to 10 years. Under Pronamp (National Program for Strengthening Medium-Sized Rural Producers), the limit reaches R$ 2.5 million, with interest rates of 8% per year and a term of up to 10 years. For other producers, the limit will be up to R$ 8 million, with interest rates of 11% per year and a term of up to 10 years. The first principal amortization installment will be due two years after the loan is signed. During this period, interest will be paid. Guarantees may be reduced if considered excessive, or increased if insufficient for the new operation. Financial institutions may also extend, for up to 30 days, certain installments of principal and interest that meet the criteria of the Provisional Measure.

This text was translated by machine from Brazilian Portuguese.