In a ceremony at the Palácio do Planalto, President Michel Temer announced this morning (06) the Agricultural Plan for Livestock (PAP) 2018/2019, which provided about R $ 194 billion of credit, reduced interest rates and expanded the National Program of Support to the Medium Rural Producer (Pronamp) to R $ 2 million, the previous limit was R $ 1.76 million.
For the Agricultural Livestock Plan, R $ 194.37 billion of rural credit will be reserved. Interest rates fell 1.5%. Farmers will be able to access resources from July 1. Of the total funds released, R $ 151.1 billion will be for funding, of which R $ 118.8 billion with interest rates at government-set rates and R $ 32.3 billion with free interest, that is, negotiated between the financial institution and the producer. The investment credit was R $ 40 billion.
In addition to the credit for funding and investments of R $ 191 billion, R $ 2.6 billion will be allocated to support commercialization and R $ 600 million will be allocated to the rural insurance subsidy. There was a reduction in interest rates of 6% a year for medium producers – those with annual gross income of up to R $ 2 million – and for 7% per year for the others.
The rates for investment financing were between 5.25% and 7.5% per year. Part of the funds raised in agribusiness credit bills will be used for complementary funding of financing and marketing with interest of up to 8.5% per year.
This text was translated by machine from Brazilian Portuguese.