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Rural credit contracting in Brazil rises 37% in 3 months of the Harvest Plan

Posted by Rafael Moro

Image: Pixabay

In the first three months of the 2021/2022 Harvest Plan operation, rural producers, cooperatives and agribusiness contracted R$ 97.75 billion to finance agricultural, forestry, aquaculture and fishing activities. The value represented an increase of 37% compared to the same period of the previous year, distributed in more than 668 thousand contracts (+3%).

The numbers are in the balance of rural credit released this Tuesday (5), by the Agricultural Policy Secretariat (SPA) of the Ministry of Agriculture, Livestock and Supply (Mapa).

Investment financing registered the greatest growth in relation to the same period of the previous plan (59%), with R$ 29.49 billion and 329 thousand contracts signed. With the highest amount released, costing operations reached close to R$ 52.69 billion and 333 thousand contracts, an increase of 27% and 6%, respectively.

For other purposes, there is demand for financing for commercialization (+34% or R$8.28 billion) and industrialization (+42% or R$7.2 billion).

Regions of the country

According to the SPA study, rural producers in the South Region, historically, are the ones that most hire financing. So far, there were R$ 36.90 billion and more than 277,000 contracts, representing, respectively, 38% and 42% of the national total.

The balance of rural credit shows the strong demand for rural financing in the North (64% increase in value and 46% in the number of contracts) and Northeast Region, 34% in value, although the number of contracts decreased by 5% .

Investment programs

Among the investment programs in the current harvest, Moderfrota reached the largest share of programmed resources (66%), followed by Procap-Agro (50%) and other lines/programs (45%).

The director of the Department of Credit and Information at the Ministry, Wilson Vaz de Araújo, points out that there is no shortage of investment resources in the current harvest and the available balance of these resources, in the group of financial institutions, is 60%.

Resource sources

The sources of resources most used by financial institutions in contracting credit to producers and their production cooperatives, between July and September, were Compulsory Resources (R$ 28.63 billion, up 71%), Controlled Rural Savings (R$21.97 billion or +5%) and Free Rural Savings (R$17.91 billion or +129%). These sources accounted for 69% of participation in the value of rural financing.

The LCA (Letters of Credit for Agribusiness), with uncontrolled resources, was the only source that had a decrease in the value (-46%) of releases compared to the previous harvest, which represented R$ 4.03 billion.

By: Dylan Della Pasqua | Safras & Mercado

This text was automatically translated from Portuguese.