With the coronavirus pandemic, many farmers began to feel an impact on production, especially for those from Rio Grande do Sul, as along with the coronavirus, the drought contributed even more to losses due to debts.
To ensure that farmers are secure, they can renegotiate financing. With this negotiation, family farmers who are registered with Pronaf (Family Farming Strengthening Program) can access a special line of credit.
Credit Debt Financing
Financing following the resolution gives the right to credit of up to R$$ 20 thousand, with an interest rate equivalent to R$4.6% per year, and a term of up to 36 months to pay the debt. Those who are registered with Pronamp (National Program to Support Medium-Sized Rural Producers). The right to credit is up to R$$ 40 thousand, with an interest rate of R$6% per year, with a period of 36 months to pay.
However, there are still individual cooperatives in agricultural production, which suffered greatly from the drought and dry spells, and they can also receive the benefit. Financing credit of up to R$65 million is available, with interest rates between R$61 and R$81 per year.
Banks have already been authorized to extend the due date of installments that are due or close to due. The president of FETAG (Federation of Agricultural Workers in Rio Grande do Sul), Carlos Joel da Silva, said that the interest rates are higher than the institution was expecting. He added that they were expecting them due to the difficulties they were going through, sales had decreased and production costs had increased.
According to calculations, a large part of the municipalities are in emergency situations, a total equivalent to more than half of the region. In the field, for example, soybeans reached 45% in one crop. In comparison, corn yield was 30% lower, the same percentage value as the apple harvest.
Despite the rise in the dollar, the Covid-19 pandemic helped a lot with the debt situation.
On the other hand, Fetag does not support the limit that the resolution imposed, as the resolution only clarifies that those farmers who belong to the affected municipalities will benefit.