CMN Resolution No. 5,125 — Amends Rules on Presentation and Analysis of Input Purchase Receipts under the Proagro Program

Resolution No. 5,125

The current text of the MCR can be found at the following electronic address: www3.bcb.gov.br/mcr.

CMN RESOLUTION NO. 5,125, OF APRIL 8, 2024

Amends, within the scope of the regulation of the Agricultural Activity Guarantee Program (Proagro), rules regarding the process of presenting and analyzing proof of input purchases.

The Central Bank of Brazil, in accordance with Article 9 of Law No. 4,595, of December 31, 1964, makes it public that the National Monetary Council, in an extraordinary session held on April 8, 2024, 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:

Art. 1 Section 2 (Budget, Plan, and Project) of Chapter 2 (Basic Conditions) of the Manual of Rural Credit (MCR) shall enter into force with the following alteration:

“3 - The budget, which comprises the financed value and own resources, must be prepared in current values without any increase for adjustment purposes.” (NR)

Art. 2 Section 1 (General Provisions) of Chapter 12 (Agricultural Activity Guarantee Program – Proagro) of the MCR shall enter into force with the following alteration:

“4 - ...................................................................................................................

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e) keep under its custody the proof of purchase of inputs used in the undertaking for 5 (five) years after the payment of indemnification, delivering them to the agent when requested, observing the provisions of item 7;

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(NR)

Art. 3 Section 5 (Coverage) of Chapter 12 of the MCR shall enter into force with the following alterations:

“10 - .................................................................................................................

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d) .....................................................................................................................

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II - of non-application of inputs or non-performance of services provided for in the budget, exclusively in the cases covered by items 11 and 12;

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(NR)

“10-A - In calculating the coverage limit referred to in item 10, a minimum deduction of 5% (five percent) shall be applied to the sum of the value of the released credit installments, plus their respective financial charges, to own resources, to minimum income guarantee, and to the investment portion, observing the provisions of item 12, letter “c”.” (NR)

“11 - The agent must require the beneficiary to present proof of purchase of inputs related to the undertaking subject to the coverage request, when there is:

a) indications of irregularity identified in accordance with the requirement referred to in MCR 12-11-2-“c”;

b) indications of insufficiency or inadequacy in the application of inputs, considering the information available in technical assistance reports, loss verification reports, and inspection reports;

c) elongation, shortening, or impossibility of previous cycles of crops cultivated in the same area of the undertaking subject to the coverage request, due to meteorological issues, or any other risk of non-compliance with Zarc identified by the agent;

d) productivity obtained considerably lower than the regional average, compared to other undertakings with similar characteristics that have been affected by the same event causing losses;

e) any other situations that the agent verifies to be indicative of irregularity or inadequate conduct of the undertaking.” (NR)

“12 - Regarding the hypotheses referred to in item 11:

a) resources related to inputs whose proof of purchase has not been delivered to the agent, in the regulated manner, as well as unused resources related to services for the application of these inputs, calculated proportionally, are considered as not applied in the undertaking;

b) the nominal value corresponding to the inputs must be calculated by the agent based on the budget linked to the undertaking, disregarding the value of inputs acquired that are attributed to another undertaking registered in the Rural Credit and Proagro Operations System (Sicor), regardless of adherence to Proagro, and observing that own production inputs and services, which do not require an invoice or other proof of purchase, must be distinguished;

c) the deduction resulting from the application of the provisions of letters “a” and “b”, combined with item II of letter “d” of item 10, shall not be added to the minimum deduction established in item 10-A; the greater of the two deductions shall be applied;

d) in case of deductions caused by non-presentation of proof of purchase of inputs as provided for in the regulation, the agent must observe the following conditions:

I - if the calculation of deductions occurs before the payment of indemnification to the beneficiary, the value to be considered for the purpose of proving the purchase of inputs must be obtained through the analysis of the proofs presented by the beneficiary;

II - if the calculation of deductions occurs after the payment of indemnification, the respective value, obtained in the manner of item I, must be returned to Proagro as a return of previous coverages, observing the provisions of MCR 12-7-17 and MCR 12-7-23; the agent is authorized, after returning the amount to Proagro, to charge the beneficiary for the purpose of restitution of this value;

e) unused resources in accordance with the provisions of letter “a” must be disqualified, according to procedures provided for in MCR 2-8;

f) The Central Bank of Brazil may, at its discretion, select operations for the agent to calculate coverage through the presentation of proof of purchase of inputs, even if indemnification has already been granted.” (NR)

Art. 4 Item 4 of Section 5 of Chapter 12 of the MCR is hereby revoked.

Art. 5 This Resolution enters into force on July 1, 2024.

ROBERTO DE OLIVEIRA CAMPOS NETO
President of the Central Bank of Brazil