GOVERNMENT PUBLISHES PROVISIONAL MEASURE RELEASING R$12 BILLION FOR RENEGOTIATION OF PRODUCERS’ DEBTS

The Brazilian government published Provisional Measure (MP) 1,314/2025, authorizing the renegotiation of rural debts for producers affected by adverse climate events. The measure allows the use of up to R$12 billion from Treasury funds and additional R$20 billion from financial institutions to settle or amortize rural debts, benefiting small, medium, and large producers, including cooperatives. Eligible producers include those who lost at least two harvests between July 2020 and June 2025, with operations contracted or issued until June 30, 2024. The Treasury funds will be managed by BNDES, while financial institutions may also use their own free resources. Interest rates for subsidized lines will range from 6% to 10% annually, with nine-year terms and a one-year grace period. Agriculture Minister Carlos Fávaro stated the program could benefit 100% of indebted producers, particularly in regions like Rio Grande do Sul, hit by consecutive droughts and floods. The MP sets sustainability and regulatory criteria to guide renegotiations.
Source: Nova Cana