Support for agricultural production
Agriculture and Livestock Plan and Family Agriculture Harvest Plan
Increased resources, lower interest rates and higher insurance coverage are the hallmarks of the new corporate and family agriculture funding plans
AGRICULTURE AND LIVESTOCK PLAN 2012/2013
In the harvest year starting in July 2012, R$ 115.2 billion will be provided to finance the cost, the marketing of and the investments in Brazilian corporate agriculture – a 7.5% increase compared to the harvest year 2011/2012: R$ 93.9 billion (81.5%) at controlled interest rates and R$ 21.3 billion (18.5%) at free interest rates.
The Plan aims to increase production of grains, fibers and oilseeds from the current 161 million tons to 170 million tons by June 2013.
More safety for producers
Program to Guarantee Agricultural and Livestock Activity (Programa de Garantia da Atividade Agropecuária - Proagro): premium rate reduced from 4% to 3% and coverage limit increased from R$ 150,000 to R$ 300,000.
Increased grant funds for rural insurance: from R$ 253 million to R$ 400 million. Including Proagro, the amount of insured production is expected to increase from R$ 9 billion to R$ 16 billion.
More Support for Livestock
Increase in funding limits and lower interest rates in credit lines for the purchase and retention of breed cattle and for the milk agroindustry.
FAMILY AGRICULTURE HARVEST PLAN 2012/2013
For the new harvest, family agriculture will receive R$ 18 billion to finance investments and costs through the National Program for Strengthening Family Agriculture (Programa Nacional de Fortalecimento da Agricultura Familiar - Pronaf) - a 12.5% increase compared to the 2011/2012 harvest.
Innovations in credit
Higher income limits for inclusion in Pronaf: from R$ 6000/year to R$ 10,000/year for low-income farmers (Group B); and from R$ 110,000/year to R$ 160,000/year for other farmers.
Improvements for the funding of production costs: increase in the credit limit from R$ 50,000 to R$ 80,000 and reduction in interest rates from 1.5%-4.5% to 1.5%-4.0% p.a.
Increase in credit limit for investment: for Youth Pronaf (Pronaf Jovem), Pronaf Semi-Arid, Pronaf Forest and Pronaf Agribusiness lines, with an emphasis on Pronaf Agribusiness of Cooperatives or Association, which had its credit limit increased from R$ 10 million to R$ 30 million.
Low income farmers now have access to credit for funding production costs and thereby also to Family Agriculture Insurance (Seguro da Agricultura Familiar - SEAF) and to Family Agriculture Price Guarantee Program (Programa de Garantia de Preços da Agricultura Familiar - PGPAF).
Income and production protection
Increase in income coverage of the Family Agriculture Insurance (SEAF): increase in income protection from R$ 3,500 to up R$ 7,000 in addition to 100% coverage of the amount to finance production costs.
Guarantee of production costs under the PGPAF: automatic discount in Pronaf financing of up to R$ 7,000 per producer/year if the market price is lower than the product guaranteed price. The cost of production will increase by 10% for basic food and socio-biodiversity products.
Increased income and support for marketing
National School Nutrition Program (Programa Nacional de Alimentação Escolar - PNAE): increase in purchases from each farmer from R$ 9,000 to R$ 20,000 per year. PNAE purchases can be made through the Rural Brazil Network (Rede Brasil Rural) platform.
Food Acquisition Program (Programa de Aquisição de Alimentos - PAA): a new Institutional Procurement type has been established, enabling federal, state and municipal agencies to purchase family agriculture products under the PAA rules. As a result, the market for family agriculture products has increased. The changes introduced include:
• direct payment to family farmers or suppliers using the PAA card;
• computerized payment and control system;
• easy accession by states and municipalities.
Qualification and Training with Sustainability
Technical Assistance and Rural Extension (Assistência Técnica e Extensão Rural - ATER): assistance to 480,000 families, with an emphasis on 170,000 beneficiaries of the Brazil without Extreme Poverty Plan and 170,000 for the purpose of improving their environmental practices.
Pronacampo/Pronatec: professional qualification for 30,000 family farmers, including young people, and ATER agents in production, management, marketing and sustainable practices (water, land, inputs).