Modernizing credit could inject more than R$ 800 billion into agriculture, says FPA.

The Parliamentary Agricultural Front (FPA) received a package of proposals to address the modernization of credit for the agricultural sector. The suggestions were named “Agro Law 3” and were presented on Tuesday (28), during the group's lunch meeting. In total, the package brings together recommendations for changes and improvements in 11 areas: Rural Product Certificate (CPR) – Law 8.929; Investment Fund in Agro-industrial Production Chains (Fiagro) and Real Estate Investment Fund (FII) – Law 8.668; Agro securities and Receivables Certificates – Laws 11.076 and 14.130; Rural credit – Law 4.829; Subsidies to agricultural policy instruments – Law 8.427; Registration of rural securities guarantees in registrars – Laws 492 and 6.015, decree-law 911; Regulation of fee collection – Law 10.169; Fiduciary alienation of fractions of rural properties; Assignment of Rights; Facilitation of access of foreign capital to Brazilian agribusiness – Law 11.033; Improvement of agricultural guarantee funds – Law 12.087. “These proposals seek, in the future, to improve agricultural financing, enhance the Harvest Plan itself, and build financing alternatives for the sector,” pointed out Deputy Pedro Lupion (Republicanos-PR), president of the FPA, during the meeting. The measures are the result of a working group within the Thematic Chamber for Credit Modernization (ModerCred) of the Ministry of Agriculture and Livestock (Mapa). In addition to the FPA, the proposals were also submitted to the Executive branch. The idea is that they can move forward either piecemeal or as a single package. The presentation was made by the coordinator of the working group and consultant in agricultural policy, José Ângelo Mazzillo. When questioned about the impact this modernization could have on the agricultural credit market, he estimated that these changes could incorporate more than R$ 800 billion in CPRs (Rural Product Certificates). The political coordinator of the FPA (Agricultural Parliamentary Front), Deputy Zé Vitor (PL-MG), recalled that these measures are in line with other proposals that the caucus has been working on, such as rural indebtedness in Bill 5.122/2023. “We can move forward with this renegotiation issue, put an end to this story and open a new chapter in the lives of many people. We can end this discussion on Rural Insurance and, now, with this initiative, advance in the modernization of credit policy,” he added. One of the objectives of the Agro Law 3 is to expand the participation of the capital market and foreign capital among the sources of financing for agriculture. According to Mazzillo, within the capital market, the sector represents approximately 3%, which opens up room to increase the space for fundraising there. Foreign capital is viewed favorably because it offers lower interest rates than those practiced domestically. According to the coordinator of the FPA's Infrastructure and Logistics Commission, Representative Tião Medeiros (PP-PR), a key point is the democratization of access to resources raised abroad. In his view, it's important to extend this advantage of cheaper money to producers of all sizes. "Exporting groups can raise money abroad, but the vast majority of producers, including medium and small producers, don't know what this is and don't even have access. Working to ensure that these producers can also benefit is fundamental," said Medeiros.

This text was translated by machine from Brazilian Portuguese.