Debts of rural producers will be the 1st item to be discussed in the Senate after election

Renegotiation of debts of rural producers. Provisional Measure 842/2018 should be the first item to be voted by the Federal Senate after the end of the first round of the 2018 elections, which should have the first round ended on 07/07. According to information from the Senate Agency, the matter was dealt with by senators In the beggining of september. However the text has been read and is now locking the agenda.

Everyone here will still have a mandate until at least January 31. So let’s keep our commitments. Both in the issue of the veto to the salary floor of agents of endemics, and in this provisional measure – he said.

Shortly before committing to the vote, Senator Lídice de Mata (PSB-BA) had asked for the subject to be analyzed. According to her, the provisional measure could benefit mainly producers in the Northeast who suffered from climatic adversities.

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With the issuance of MP 842/2018, the government changes the terms of renegotiation of rural debts arising from financing of the National Program for Strengthening Family Agriculture (Pronaf), the Japanese-Brazilian Cooperation Program for the Development of Cerrados (Prodecer), and of the Special Credit for Agrarian Reform Program (Procera).

MP 842/2018 revokes five articles (28 to 32) of Law 13606, of 2018. In the case of Pronaf, one of the repealed provisions grants a discount of between 40% and 80% in the settlement of operations contracted by 2015. These sections have been amended in the joint committee that approved the MP in the form of the Draft Law 25/2018 Conversion, maintaining some rights of rural producers in relation to dates of adhesion and concession of discounts. The changes inserted in the PLV retake items vetoed by the government when sanctioning Law 13606, of 2018, and also include other subjects (see chart below).

These articles had already been vetoed by the President of the Republic, Michel Temer, when Law 13606 was sanctioned in January. In April, however, the vetoes were overturned in a session of Congress under the pressure of parliamentarians linked to the agricultural sector.

When presenting the MP to Congress, the government claimed concern about the public coffers. The cost of the renegotiations was putting at risk the fulfillment of the primary result goal (R $ 159 billion deficit) and the spending ceiling imposed by the New Tax Regime (Constitutional Amendment 95).

This text was translated by machine from Brazilian Portuguese.