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The news was announced by President Luiz Inácio Lula da Silva (PT) this Wednesday (28), stating that the Family Farming Agriculture Plan will receive an allocation of R$ 71.6 billion. The amount will be valid for 2023 and 2024, representing a 34% increase compared with the amount allocated for this purpose last year.
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Reduction in interest rates and incentives
One of the significant changes this year is the reduction in the interest rate, which will go from 5% to 4% per year, applied only to family farmers who produce foods such as rice, beans, cassava, tomatoes, milk and eggs. The Federal Government's goal is to stimulate the production of these essential foods for Brazilian families.
The agricultural activity guarantee program, Proagro Mais, will have a 50% reduction in rates for food production. In addition, there will be greater incentives for farmers who choose environmental preservation, with interest rates of 3% per year for operating costs and 4% per year for investment. These benefits will be granted to workers who engage in:
- Organic products;
- Sociobiodiversity products;
- Bioeconomy;
- Agroecology.
Changes to productive microcredit and rural productive development
The productive microcredit system, intended for low-income farmers, will also undergo changes. The required monthly family income limit will be increased from R$ 23 thousand to R$ 40 thousand. In addition, the credit limit will be expanded from R$ 6 thousand to R$ 10 thousand. In the North region, the on-time payment discount will be increased from 25% to 40%.
Rural productive development, a resource intended for farmers living in poverty, will also undergo adjustments. The maximum required family income will be revised, increasing from R$ 2.4 thousand to R$ 4.6 thousand per family.
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Lula takes a jab at Bolsonaro
In the speech launching the Family Farming Harvest Plan, Lula took a jab at his predecessor, Jair Bolsonaro, without mentioning him by name. He highlighted that, unlike other presidents, he is not encouraging the purchase of weapons, but rather the production of high-quality food to ensure that Brazilian families have enough to eat.
Harvest Plan
The previous day, Lula had announced the details of the traditional Harvest Plan, allocating R$ 364.22 billion to finance agricultural activities, serving medium-sized and large rural producers. This amount, added to the funding allocated to the Family Farming Harvest Plan, totals approximately R$ 435.8 billion.
Despite being a record amount, it is still below expectations. The Minister of Agriculture, Carlos Fávaro, had mentioned the possibility of releasing R$ 400 billion
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. Even so, Lula believes that this announcement could be the beginning of a rapprochement with the agricultural sector, which in recent years has been more aligned with Jair Bolsonaro.
