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Rural Credit Disbursement Reaches Record R$ 400.7 Billion for 2023/2024 Harvest Year

rural credit

The rural credit disbursement for Brazil's 2023/2024 Crop Plan has reached an unprecedented R$ 400.7 billion for the period from July 2023 to June 2024. This represents an impressive 12% increase compared to the previous crop year.


According to the Agricultural Policy Secretariat of the Ministry of Agriculture and Livestock (Mapa), this marks the first time both corporate and family agriculture have together surpassed the R$ 400 billion threshold.


Of the total, funding for production costs amounted to R$ 219.8 billion, while investment lines reached R$ 98 billion. Commercialization operations accounted for R$ 51.7 billion, and industrialization operations reached R$ 31.2 billion.


Breakdown of Financial Contracts

Throughout the twelve-month agricultural year, 2,210,030 contracts were executed. Of these, 1,681,064 were under the National Program for Strengthening Family Agriculture (Pronaf) and 187,212 under the National Program for Supporting Medium Rural Producers (Pronamp). The financial allocations for small and medium-sized producers across all categories (production costs, investment, commercialization, and industrialization) were R$ 59.6 billion for Pronaf and R$ 49.6 billion for Pronamp, respectively.


In addition, other producers formalized 341,754 contracts, totaling R$ 291 billion in loans facilitated by financial institutions.

The R$ 400.7 billion disbursement represents 92% of the total allocated for the current crop year across all producer categories (small, medium, and large), which was R$ 435.8 billion. In the corporate agriculture sector (medium and large producers), rural credit applications reached R$ 341.1 billion from July to May, showing an 11% increase over the same period last year. This figure accounts for 93% of the government’s programmed total of R$ 364.2 billion.


Significant Growth in Investment Loans

In agricultural investment financing, Pronamp reached R$ 4.5 billion, marking an 81% increase. Loans under the Program for the Modernization of the Agricultural Tractor Fleet and Associated Implements and Harvesters (Moderfrota) reached R$ 7.5 billion, a 22% rise from the previous crop period.


Regarding rural credit funding sources, equalizable free resources hit R$ 12.4 billion, representing a 128% growth from the previous year.


Contribution of Non-Controlled Funding Sources

The Agricultural Policy Secretariat (SPA) also highlights the significant role of non-controlled funding sources in rural credit funding. The Agribusiness Credit Bill (LCA Livre) accounted for 46% of the corporate agriculture applications in the current crop year, totaling R$ 158 billion. This marks a 69% increase over the previous year when this source constituted 31% (R$ 93 billion) of corporate agriculture applications.


The figures presented are provisional and sourced from the Rural Credit Operations System and Proagro (Sicor/BCB), which records credit transactions reported by financial institutions authorized to operate in rural credit.

The data available may vary depending on the consultation date within the thirty days following the last month of the period considered.


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