Rural credit contracting grows

The contracting of rural credit in the first six months of the 2019/20 harvest – from July to December – totaled R$ 108.5 billion. The Ministry of Agriculture reported that, of this total, R$ 28.5 billion was allocated to investments, while R$ 80 billion was directed to financing, commercialization, and industrialization operations.

Financing for production costs grew by 5%, reaching R$ 61.3 billion. Of this amount, R$ 14.2 billion was granted under the National Support Program for Medium-Sized Rural Producers (Pronamp). Meanwhile, the contracting of investment funds recorded a 19% increase, with Pronamp reaching R$ 1.47 billion, representing a 49% expansion.

According to the ministry, rural credit contracts sourced from controlled funds increased by 5%, while contracts using non-controlled funds grew by 14%, reaching R$ 26.2 billion, of which R$ 15.2 billion originated from the issuance of LCAs (Agribusiness Credit Bills).

This performance was driven by the reduction in inflation and the Selic rate, which enabled greater access for rural producers to free-market resources.