CMN Resolution No. 4828 - Adjusts Rules for Operations under the National Program for Strengthening Family Agriculture (Pronaf)

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 an extraordinary session held on June 17, 2020, in accordance with Articles 4, item VI, of Law No. 4,595 of 1964, 4 and 14 of Law No. 4,829 of November 5, 1965, 48, § 2, of Law No. 8,171 of January 17, 1991, and 3, § 3, of Law No. 11,326 of July 24, 2006,

R E S O L V E S:

Art. 1. Section 1 (General Provisions) of Chapter 2 (Basic Conditions) of the Rural Credit Manual (MCR) shall enter into force with the following alteration:

“12-A - ........................................................

a) in the case of beneficiaries of the National Agrarian Reform Program (PNRA) classified in Groups “A” and “A/C” of the National Program for Strengthening Family Agriculture (Pronaf), the receipt of registration in the Rural Environmental Registry (CAR) of the beneficiary's individual lot shall be required, observing that, in the absence of this document, the receipt of registration in the CAR referring to the perimeter of the settlement project may be presented, in which case the borrower must appear in the list of beneficiaries of the agrarian reform settlement subject to registration in the CAR;

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Art. 2. Section 1 (General Provisions) of Chapter 10 (National Program for Strengthening Family Agriculture - Pronaf) of the MCR shall enter into force with the following alteration:

“40 - ..........................................................

a) the total indebtedness limit of the borrower, in the entire SNCR and in all Pronaf credit lines, shall not exceed R$40,000.00 (forty thousand reais), based on the sum of the outstanding balances that count with the application of the methodology provided for in the caput of this item, respecting the limit of R$20,000.00 (twenty thousand reais) per credit operation; and

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Art. 3. Section 5 (Investment Credits - Pronaf Mais Alimentos) of Chapter 10 (Pronaf) of the MCR shall enter into force with the following alterations:

“5 .............................................................

a) .............................................................

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IV - up to R$50,000.00 (fifty thousand reais) for the construction or renovation of housing on a rural property owned by the borrower or a third party, observing that the CPF (Individual Taxpayer Registry) of both must appear as holders in a valid DAP (Declaration of Aptitude for Pronaf), noting that each borrower can only have one outstanding operation for this purpose, which must define in the technical project the economic viability of the activities developed in the productive unit of the borrower for the payment of the credit, and that, in the case where the object of the financing is carried out on a rural property of a third party, the owner must guarantee the credit operation and agree to formally cede to the borrower the location of the construction or the housing to be renovated, for a period of no less than 25 (twenty-five) years;

b) financing for the construction, renovation, or expansion of permanent improvements and installations, machinery, equipment, including irrigation, and agricultural implements and storage structures, for common use, is admitted in the form of collective credit, provided that the individual limit provided for in item “a” is observed per participating beneficiary and that the sum of the values of the individual operations and the beneficiary's participation in the collective operation does not exceed the limit of up to R$330,000.00 (three hundred and thirty thousand reais) for activities of swine farming, poultry farming, aquaculture, crustacean farming, and fruit growing per beneficiary and per agricultural year, or up to R$165,000.00 (one hundred and sixty-five thousand reais) for other enterprises and purposes;

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Art. 4. The title of Section 16 (Credit for Investment in Renewable Energy and Environmental Sustainability - Pronaf Eco) of Chapter 10 (Pronaf) of the MCR shall enter into force with the following alteration:

“Section: Investment Credit in Extractive Exploitation Systems, Sociobiodiversity Products, Renewable Energy and Environmental Sustainability (Pronaf Bioeconomy) - 16” (NR)

Art. 5. Section 16 (Investment Credit in Extractive Exploitation Systems, Sociobiodiversity Products, Renewable Energy and Environmental Sustainability - Pronaf Bioeconomy) of Chapter 10 (Pronaf) of the MCR shall enter into force with the following alterations:

“1 - The Credit Line for Investment in Extractive Exploitation Systems, Sociobiodiversity Products, Renewable Energy and Environmental Sustainability (Pronaf Bioeconomy) is subject to the following special conditions:

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b) .............................................................

I - small hydroelectric plants and renewable energy technologies, such as the use of solar energy, biomass, wind, mini-biofuel plants, and the substitution of fossil fuel technology by renewable energy in agricultural equipment and machinery;

II - productive systems of extractive exploitation and ecologically sustainable sociobiodiversity products;

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“2 - ...........................................................

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b) purpose: investment for the implementation of palm oil or rubber tree crops, with associated working capital for the maintenance of the crop until the sixth year;

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“4 - The financings referred to in item 2 must provide for the release of installments during the first 6 (six) years of the project, observing that the resources destined for labor and technical assistance must observe the following conditions, independent of the resources destined for other working capital items:

a) .............................................................

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II - from the 2nd (second) to the 6th (sixth) year, up to R$720.00 (seven hundred and twenty reais) per hectare/year, with release in quarterly installments, conditioned on the correct execution of the activities planned for the period in the financing project;

b) .............................................................

I - up to R$60.00 (sixty reais) per hectare/year, during the first 6 (six) years of project implementation, with the limits defined in MCR 2-4-13-b not applying to these operations;

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Art. 6. Section 18 (Transitional Norms) of Chapter 10 (Pronaf) of the MCR shall enter into force with the following alteration:

“11 - In the 2020/2021 agricultural year, the financial institution may grant Pronaf beneficiaries credits under the conditions of Pronamp provided for in MCR 8-1, backed by controlled resources provided for in MCR 6-1-2, without prejudice to the borrower continuing to be a Pronaf beneficiary, observing that, in the aforementioned agricultural year, the borrower who contracts credit backed by Pronaf is prohibited from contracting credit backed by Pronamp, and that which contracts credit in Pronamp cannot contract credit backed by Pronaf, except as provided in MCR 10-1-15.” (NR)

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

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