The Federal Government has announced the long-awaited Safra Plan 2023/2024, a set of measures and investments to strengthen the country's agricultural sector and promote food security.
With a record amount of resources, the business financing plan for agriculture and livestock was signed for R$364.22 billion. This amount is earmarked for medium and large-scale agricultural production until June 2024.
This year, there was a significant increase compared to the previous plan, reflecting the importance attributed to the sector. Pronamp, for example, saw a 27% increase on the previous year (287.16 billion).
One of the highlights is the incentive for family farming (Pronaf), which will receive R$71.6 billion for financing, technical assistance and the purchase of equipment, with the aim of strengthening and socially including family farmers.
This figure marked a record, with the 2023/2024 harvest having a volume 34% higher than the previous harvest.
The Safra Plan 2023-2024
One of the government's objectives with the Safra Plan is to encourage sustainable production systems. To this end, it is offering an interest rate reduction for pasture recovery.
In addition, there is an award for rural producers who have sustainable practices.
How are Pronamp funds divided up?
The resource of R$ 364.22 billion is divided into:
- R$272.12 billion for funding and commercialization
- R$ 92.1 billion for investments
Interest rates for the first topic will be 8% per year for Pronamp producers. For the others, the rate will be set at 12% per year.
On the other hand, the interest rate for investment can vary from 7% p.a. to 12.5% p.a., depending on the program.
Here's a comparison with the previous year:
Sustainability
Sustainability is a central concern in the Safra Plan 2023/2024. Incentives will be offered for sustainable agricultural practices, such as the preservation of legal reserve areas, the proper handling of pesticides and the implementation of more efficient production systems.
This way, rural producers with a Rural Environmental Registry (CAR) and those with more sustainable farming practices will be rewarded.
The premium is a 0.5 percentage point reduction in the interest rate for funding for those who have their CAR analyzed and are in the following situations:
- In the Environmental Regularization Program (PRA)
- No environmental liabilities
- Environmental reserve quota may be issued
In addition, rural producers with more sustainable practices will also be entitled to a 0.5 percentage point reduction in the interest rate on funding. The practices considered sustainable are:
- Agroecological or organic production
- Bioinsumos
- Waste treatment in pig farming
- Rock dust and limestone
- Renewable energy in poultry farming
- Tracked cattle herd
- Sustainability certification
It is important to note that if the producer fulfills more than one requirement of these sustainable practices, they can accumulate the reduction in the interest rate. For example, if the rural producer fulfills three requirements, he can reduce the interest rate on costing by up to 1.5 percentage points.
The government will also seek to expand the carbon credit market for rural producers, encouraging actions that contribute to reducing greenhouse gas emissions.
Program for Financing Sustainable Agricultural Production Systems (RenovAgro)
RenovAgro aims to finance sustainable practices such as:
- Recovering areas
- Implementation or expansion of integrated crop-livestock-forestry systems
- Protecting natural resources
- Implementing organic farming
- Restoring preservation or reserve areas
- Production of bio-inputs and bio-fertilizers
- Generating renewable energy
- Other sustainable practices with low gas emissions
In this context, in the 2023/2024 Safra Plan, RenovAgro offers the lowest interest rate in corporate agriculture (7%) for the recovery of degraded pastures.
In addition to RenovAgro, the Proirriga, Inovagro, Moderagro and Moderfrota programs also encourage agricultural production with low carbon emissions.
Who qualifies as a medium-sized producer under the 2023/2024 Safra Plan?
To qualify for Pronamp, the annual gross income limit must be R$3 million, an increase of R$600,000 compared to the previous harvest. This change is justified by the increase in the price of agricultural products.
The interest rate for the purchase of agricultural machinery and equipment under the Program to Modernize the Fleet of Agricultural Tractors and Harvester-Associated Implements (Moderfrota) will be reduced to 10.5% p.a., with no financing limit.
As a result, the limit for investment financing in Pronamp's 2023-2024 Safra Plan is R$600,000 per beneficiary per year.
Financing Program for Irrigated Agriculture and Protected Cultivation (Proirriga)
This is a financing program for irrigation system items. This program includes infrastructure, the acquisition, implementation and recovery of equipment and the installation of crop protection.
Check out the funding per program:
Pronaf - Safra Plan 2023/2024
One of the highlights of the 2023/2024 Safra Plan is the reduction in the interest rate to 4% per year for those who produce rice, beans, milk, eggs, tomatoes, cassava, among others.
The aim of the measure is to guarantee the country's food security and stimulate the production of essential foodstuffs.
In addition, farmers who have a sustainable production of healthy food will have even lower interest rates: 3% per year for funding and 4% for investments.
Microcredit for low-income farmers has also undergone changes. Those who fall under Pronaf B must have an annual family income of R$40,000. As a result, the credit limit has also risen from R$6,000 to R$10,000.
Family farmers in the northern region will have their arrears reduced from 25% to 40%.
Another novelty was the action of the Ministry of Development and Social Assistance, Family and Fight against Hunger. This is rural productive development, aimed at farmers living in poverty. The amount will rise from R$2,400 to R$4,600 per family.
The federal government has extended the payment period for farmers who fall under Pronaf B to three years.
More Food Program
The Safra Plan 2023/2024 brings back the More Food Program as a way of stimulating the purchase of agricultural machinery and implements. The aim is to improve quality of life and increase productivity in order to boost the national industry.
As a result, interest rates on the Pronaf line for agricultural implements and machinery were reduced from 6% to 5% per year.
Conclusion - Safra Plan 2023/2024
With the announcement of the Safra Plan 2023/2024, the government has reaffirmed its commitment to the agricultural sector, recognizing its strategic importance for the country's economy.
Through targeted investments and policies, it is hoped to boost production, increase competitiveness and promote the sustainable development of Brazilian agriculture in the coming years.
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Talk to our consultants and check out the conditions for financing your agricultural drone with resources from the 2023/24 Safra Plan via WhatsApp (16) 99771-8439 or email contato@xmobots.com.br.