The 2016/2017 Harvest Plan has differentiated interest rates.

Mines 247 - Since the first of this month, banks that operate with official rural credit have been able to finance agricultural activities related to the 2016/2017 harvest, and can receive projects from family farming and other rural segments. The 2016/2017 Harvest Plan will allocate R$ 185 billion in credit to rural producers in the country, with interest rates ranging from 0,5% to 5,5% per year for family farming (Pronaf) and from 8% to 12,75% per year for agribusiness.

According to the technical coordinator of rural credit at Technical Assistance and Rural Extension Company of the State of Minas Gerais (Emater-MG)According to Marcos Meokarem, almost all lines of the National Program for Strengthening Family Farming (Pronaf) have had their resources increased. "The readjustment was around 10%, in a nearly linear fashion across all Pronaf lines, which is very good, as it means more resources available for producers," he celebrates.

The resources are for financing the operating costs, investments, and marketing of activities developed on rural properties. This year, some new features in the Harvest Plan may benefit small producers, but it is necessary to pay attention to take advantage of the opportunity.

Another benefit for family farmers was the creation of differentiated interest rates for activities related to some traditional crops such as rice, beans, cassava, wheat, potatoes, pineapple and peanuts, garlic and tomatoes, among others, and those based on agroecology or in ecological transition, as well as beekeeping, dairy cattle farming, fish farming, sheep and goats.

“Previously, interest rates were based on the contracted amount; now it depends on the activity. So, in the case of these activities, the cost limit has been set at R$ 250, with 2,5% interest per year,” explains Meokarem.

The coordinator also points out that, for financing corn planting up to R$ 20, the interest rate will be 2,5% per year. "If the corn exceeds R$ 20, the normal rate is 5,5% per year, as is the case for other crops not included in the list with differentiated interest rates," he notes.

According to the director, the new measures also extend to the Pronaf investment line for the acquisition of animals for breeding and fattening. The limit is R$ 20, with interest rates of 5,5% per year.

A survey conducted by Emater-MG with the Central Bank shows that Pronaf generated 183.871 contracts (operating and investment loans) in the state during the 2015/2016 harvest, totaling R$ 2,58 billion. Northern Minas Gerais was the region that registered the highest volume of contracts in the last harvest, with 72.147, but the largest share of the credit line, destined for family farmers, remained in the southern region, with R$ 704,5 million.

In the Mais Alimentos Program, according to the technical coordinator of Emater-MG, the limit of up to R$ 165 also includes the option of 2,5% interest for some activities such as conservation practices, pasture formation, forage crops, silage, hay, water distribution, protected cultivation, cooling tanks and milking machines, among others. For other activities in the program, the interest rate is 5,5% per year.

Marcos Meokarem points out that those who have already registered their rural environmental status have priority in receiving credit from financial institutions, according to the rules of the 2016/2017 Harvest Plan. This rule applies to both small producers and large-scale agribusiness. "It's a way for the government to encourage environmental compliance in rural activities," he explains.

In Minas Gerais, Emater-MG, which primarily serves family farmers, can guide those interested in accessing Pronaf credit lines and even prepare the project to be submitted to the financial institution. This can be done at the company's 788 offices spread throughout the state's municipalities.

*With advice