Central Bank Resolution CMN No. 4830: Adjusts Rules for the Rural Activity Guarantee Program (Proagro)

The Central Bank of Brazil, in accordance with Article 9 of Law No. 4,595 of December 31, 1964, makes public that the National Monetary Council, in a session held on May 29, 2020, considering the provisions of Articles 59, 65-A, and 66-A of Law No. 8,171 of January 17, 1991, and Article 4 of Decree No. 175 of July 10, 1991,

R E S O L V E S:

Article 1. Section 1 (General Provisions) of Chapter 16 (Rural Activity Guarantee Program – Proagro) of the Rural Credit Manual (MCR) shall enter into force with the following alterations:

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b) deliver to the agent, at the time of formalizing the operation's classification in Proagro, a sketch or map of the crop's location and, necessarily, the geodetic coordinates with the points necessary to identify the perimeter that defines the area of the crop or, if applicable, the two or more areas subject to the same financing operation;

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i) communicate to the agent any eventual alteration of the initially presented area, within thirty days after the date of the end of planting, prohibiting the agent from altering the area after the start of the event causing losses;

j) observe the program's and rural credit's norms.” (NR)

Article 2. Section 2 (Classification) of Chapter 16 of the MCR shall enter into force with the following alteration:

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d) the location of the enterprise informed in the Loss Verification Report (RCP) must coincide with that registered in the Rural Credit and Proagro Operations System (Sicor), observing the conditions of the MCR - Document 19.” (NR)

Article 3. Section 3 (Additional) of Chapter 16 of the MCR shall enter into force with the following alterations:

“2 - The basic rates of the additional for classification of enterprises in dryland regime in Proagro, from July 1, 2020, shall be as follows:

a) corn (1st harvest) and soybeans: 5%;

b) second-crop corn (2nd harvest):

I - in the South region: 8.5%;

II - in the Center-West region: 7%;

III - in other regions: 6%;

c) wheat: 10.5%;

d) beans (1st harvest):

I - in the Northeast region: 9%;

II - in other regions: 4%;

e) beans (2nd harvest):

I - in the South region: 12.5%;

II - in other regions: 4%;

f) beans (3rd harvest):

I - in the South region: 12.5%;

II - in other regions: 7.5%;

g) onion: 5%;

h) plum, apple, nectarine, and peach, without hail protection structure:

I - in the South region: 8.5%;

II - in other regions: 6.5%;

i) plum, apple, nectarine, and peach, with hail protection structure: 4%;

j) oats, barley, and canola:

I - in the South and Southeast regions: 10.5%;

II - in other regions: 6.5%;

k) other zoned crops: 4%.” (NR)

“2-B - The basic rates of the additional for classification of enterprises in dryland regime in Proagro Mais, from July 1, 2020, shall be as follows:

a) soybeans: 3.5%;

b) corn (1st harvest):

I - in the Northeast region: 8%;

II - in other regions: 3.5%;

c) second-crop corn (2nd harvest):

I - in the South region: 8.5%;

II - in other regions: 5%;

d) wheat: 10.5%;

e) beans (1st harvest):

I - in the Northeast region: 8%;

II - in other regions: 3.5%;

f) beans (2nd harvest):

I - in the South region: 13.5%;

II - in other regions: 3%;

g) beans (3rd harvest):

I - in the South region: 10.5%;

II - in other regions: 3%;

h) beans (vegetables): 9.5%

i) grapes:

I - in the South region: 4%;

II - in other regions: 3%;

j) onion:

I - in the South region: 6.5%;

II - in other regions: 3%;

k) plum, apple, nectarine, and peach, without hail protection structure:

I - in the South region: 10.5%;

II - in other regions: 6.5%;

l) plum, apple, nectarine, and peach, with hail protection structure: 3.5%

m) oats, barley, and canola:

I - in the South region: 10.5%;

II - in other regions: 6.5%;

n) beet: 5%;

o) sorghum:

I - in the Northeast region: 9.5%;

II - in other regions: 3%;

p) other zoned crops: 3%

q) other crops in areas not zoned for the enterprise: 3%.” (NR)

“2-G - The basic rate of the additional for classification of irrigated crop enterprises, including protected crops, in Proagro and Proagro Mais, from July 1, 2020, is 2%.” (NR)

Article 4. Section 4 (Verification of Losses) of Chapter 16 of the MCR shall enter into force with the following alterations:

“4-A - The Proagro agent must verify if the event reported by the beneficiary in the loss notification actually occurred in the municipality or region where the classified enterprise is located, accepting for this purpose:

a) satellite images or other remote sensing tools;

b) consultation with information made available by public tools, such as the Agricultural Decision Support System (Sisdagro) of the National Institute of Meteorology (INMET) and the Vegetation Temporal Analysis System (SATVeg) of the Brazilian Agricultural Research Corporation (Embrapa); and

c) reports, communications, or analogous documents issued by regional technical assistance and rural extension companies.” (NR)

“4-B - For operations classified from January 1, 2021, the verification of losses must be carried out using technology that attests to the presence of the loss verification responsible person in the classified area.” (NR)

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e) sketch, location map, or geodetic coordinates of the crop, observing the provisions of MCR 2-1-2;

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Article 5. Section 7 (Expenses) of Chapter 16 of the MCR shall enter into force with the following alteration:

“14 - Within a maximum period of 5 (five) business days from its decision regarding the coverage request, the agent must, based on the data from MCR - Document 20-2 of this manual, register in the Rural Credit and Proagro Operations System (Sicor), as applicable:

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Article 6. Item 11 of Section 1 of Chapter 16 of the MCR is hereby revoked.

Article 7. This Resolution enters into force on July 1, 2020.

Roberto de Oliveira Campos Neto President of the Central Bank of Brazil