CMN Resolution No. 5,127 — Adjusts Coverage Limits for Proagro with 40% and 30% Yield Loss Probability

The current text of the MCR is available at the following electronic address: www3.bcb.gov.br/mcr.

CMN RESOLUTION NO. 5,127, OF APRIL 8, 2024

Adjusts, within the scope of the Agricultural Activity Guarantee Program (Proagro), the coverage limits applicable to undertakings with a probability of yield losses due to adverse meteorological events equal to 40% (forty percent) and 30% (thirty percent), in accordance with recommendations from the Climate Risk Agricultural Zoning (Zarc).

The Central Bank of Brazil, in accordance with Art. 9 of Law No. 4,595, of December 31, 1964, makes public that the National Monetary Council, in an extraordinary session held on April 8, 2024, considering the provisions of Arts. 59, 65-A, and 66-A of Law No. 8,171, of January 17, 1991, and Art. 4 of Decree No. 175, of July 10, 1991,

RESOLVES:

Art. 1. Section 2 (Classification) of Chapter 12 (Agricultural Activity Guarantee Program - Proagro) of the Rural Credit Manual (MCR) shall enter into force with the following alterations:

“20 -
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f) maximum coverage percentage, as provided in MCR 12-5-10-B; ............................................................................................................” (NR)

Art. 2. Section 4 (Proof of Losses) of Chapter 12 of the MCR shall enter into force with the following alterations:

“5-A - For loss communications related to enterprises classified from July 1, 2024, the agent must verify, through the use of remote sensing tools referred to in MCR 2-7-3-“a”, whether crop emergence actually occurred and whether Zarc recommendations were respected, observing the following conditions:

a) verification referred to in the caput is waived for crops for which there is no remote sensing technology capable of determining emergence or compliance with Zarc recommendations;

b) verification referred to in the caput must be carried out before the proof of losses is conducted, with the agent responsible for making the information obtained through remote sensing available to the person responsible for proving losses;

c) the person responsible for proving losses must consider the information obtained through remote sensing provided by the agent as technical support for the execution of their activities and for filling out the proof of losses report;

d) if it is proven, as a result of the use of remote sensing tools, that there was no emergence in the classified area, or that the enterprise was not conducted in accordance with Zarc recommendations, the following measures must be adopted:

I - in the case of no emergence or non-compliance with Zarc in the entire classified area: the loss communication shall be considered undue; or

II - in the case of no emergence or non-compliance with Zarc in only part of the classified area: the provisions of MCR 12-5 and MCR Document 4 must be observed for the purpose of applying a deduction to the coverage calculation base.” (NR)

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

“10-B - The coverage due for enterprises classified from July 1, 2024, shall be differentiated according to the probabilities of yield losses due to adverse meteorological events foreseen in Zarc, as follows:

a) are entitled to coverage of up to 100% (one hundred percent) of the limit obtained in the manner of items 10 and 10-A:

I - enterprises with a probability of losses of 20% (twenty percent);

II - enterprises classified in Proagro Mais not zoned, but with indication of Technical Assistance and Rural Extension (Ater), as provided in MCR 12-2-8;

b) are entitled to coverage of up to 75% (seventy-five percent) of the limit obtained in the manner of items 10 and 10-A, enterprises with a probability of losses of 30% (thirty percent);

c) are entitled to coverage of up to 50% (fifty percent) of the limit obtained in the manner of items 10 and 10-A, enterprises with a probability of losses of 40% (forty percent);

d) the indication of the probability of yield losses due to adverse meteorological events referred to in items “a”, “b”, and “c” must be proven through the procedure provided for in MCR 12-4-5-A.” (NR)

Art. 4. This Resolution enters into force on July 1, 2024.

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