CMN Resolution No. 5,198 — Adjusts Indemnification Limits for Proagro-Eligible Projects and Updates Executive Branch References in the Rural Credit Manual

Resolution No. 4,631

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

CMN RESOLUTION NO. 5,198, OF DECEMBER 19, 2024

Adjusts the indemnification limits applicable to projects enrolled in the Agricultural Activity Guarantee Program – Proagro and updates references to Executive Branch bodies mentioned in Chapter 12 (Agricultural Activity Guarantee Program – Proagro) of the Rural Credit Manual.

The Central Bank of Brazil, in accordance with Art. 9 of Law No. 4,595, of December 31, 1964, makes it known that the National Monetary Council, in a session held on December 19, 2024, based on 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 1 (General Provisions) of Chapter 12 (Agricultural Activity Guarantee Program – Proagro) of the Rural Credit Manual – MCR shall be in effect with the following alterations:

“1 - ............................................................................................................................

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j) regulate, in articulation with the ministries of the agricultural sector, the necessary conditions for the enrollment of agricultural operating costs conducted exclusively with the beneficiary's own resources;

.........................................................................................................................” (NR)

Art. 2. Section 4 (Proof of Losses) of Chapter 12 of the MCR shall be in effect with the following alterations:

“27 - The proof of losses must be carried out by entities and professionals who are part of the National Registry of Loss Verification Officers (CNEC) of Proagro, regulated by the Ministry of Agrarian Development and Family Agriculture (MDA).” (NR)

Art. 3. Section 5 (Coverage) of Chapter 12 of the MCR shall be in effect with the following alterations:

“3 - ............................................................................................................................

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

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IV - non-cultivated project in an agroecological or organic production system, or in transition to an agroecological-based system, according to the standardization established by the ministries of the agricultural sector, when it has been enrolled in the condition referred to in MCR 12-10-2-“e”;

.........................................................................................................................” (NR)

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

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 - projects enrolled from July 1, 2024, to January 1, 2025, with a loss probability of 20% (twenty percent); and

II - non-zoned projects enrolled from July 1, 2024, to January 1, 2025, in Proagro Mais, but with an indication of Technical Assistance and Rural Extension (Ater), as provided for in MCR 12-2-8;

b) are entitled to coverage of up to 85% (eighty-five percent) of the limit obtained in the manner of items 10 and 10-A:

I - projects enrolled from January 2, 2025, with a loss probability of 20% (twenty percent); and

II - non-zoned projects enrolled from January 2, 2025, in Proagro Mais, but with an indication of Ater, as provided for in MCR 12-2-8;

c) are entitled to coverage of up to 75% (seventy-five percent) of the limit obtained in the manner of items 10 and 10-A for projects enrolled from July 1, 2024, with a loss probability of 30% (thirty percent);

d) are entitled to coverage of up to 50% (fifty percent) of the limit obtained in the manner of items 10 and 10-A for projects enrolled from July 1, 2024, with a loss probability of 40% (forty percent);

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

“10-C - In projects enrolled from January 2, 2025, whose equilibrium rates referred to in MCR 12-10-3-“d” are greater than or equal to 40% (forty percent), the coverage due referred to in item 10-B shall have an additional reduction of:

a) 20 p.p. (twenty percentage points), when it is a project with an equilibrium rate greater than or equal to 40% (forty percent) and less than 60% (sixty percent); or

b) 30 p.p. (thirty percentage points), when it is a project with an equilibrium rate greater than or equal to 60% (sixty percent).” (NR)

Art. 4. Section 11 (Monitoring and Inspection) of Chapter 12 of the MCR shall be in effect with the following alterations:

“10 - In the event of evidence of irregularities in the performance of Proagro experts, the Proagro agent must communicate such evidence to the Ministry of Agrarian Development and Family Agriculture (MDA), forwarding, whenever possible, the documents related to the evidence of the irregularities verified.” (NR)

Art. 5. This Resolution enters into force on January 2, 2025.

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