FPA REQUESTS R$ 27 BILLION FOR EQUALIZATION IN THE PLANO SAFRA (AGRICULTURAL PLAN).

Brazil’s Parliamentary Agricultural Front (FPA) urged the Agriculture Ministry to raise interest rate equalization funding in the 2025/26 Plano Safra to R$27 billion, from the current R$13.5 billion, arguing subsidized credit remains under pressure amid high financing costs, tighter farm margins and rising defaults. The group criticized the inclusion of private financing, such as Rural Product Certificates (CPRs), in official Plano Safra totals, saying it overstates credit availability. Data cited by the FPA show subsidized programs weakened in the current cycle, with Moderfrota and Proirriga disbursements down 54.8% and 56.2%, respectively. The sector also requested an emergency credit line and political support for bills covering rural debt renegotiation and crop insurance modernization. The government is expected to announce the new Plano Safra on July 1. Banks have requested roughly R$200 billion in equalized resources, versus approximately R$113 billion in the current cycle.
Source: Revista Cultivar