Resolution CMN No. 2100 — Discloses Basic Operating Costs (VBC) for Summer 1994/1995 Crop Products and Provides for Complementary Measures

RESOLUTION No. 002100

Discloses Basic Operating Costs (VBC) for products of the 1994/1995 summer crop and provides for complementary measures arising therefrom.

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 August 24, 1994, having regard to the provisions of Article 4, item VI, of the aforementioned Law No. 4,595, and of Articles 4 and 14 of Law No. 4,829 of November 5, 1965,

RESOLVES:

Article 1. Approve the Basic Operating Costs (VBC), as well as the release schedule and financing limits for crops of the 1994/1995 summer crop, as per the attached sheets, intended for the update of documents Nos. 1.2, 2.1, and 3 of the Rural Credit Manual (MCR).

Sole Paragraph. The Basic Operating Costs (VBC) intended for products cultivated in the Northeast Region are valid for plantings carried out until December 31, 1994.

Article 2. Authorize, for the purpose of formalizing financing, the option between the VBC, own budget, or technical project, regardless of the size of the producer or the category of the cooperative.

Paragraph 1. The option for an own budget is restricted to the beneficiary who achieved, in the last 3 (three) normal crops, productivity higher than the last productivity range of the VBC.

Paragraph 2. A financing limit of 100% (one hundred percent) is admitted for the crops of rice, beans, corn, and soy, when the credit is formalized based on a technical project that allows incorporating an increase in productivity equal to or greater than 10% (ten percent) of the average obtained by the producer in the last 3 (three) normal crops.

Paragraph 3. Financing intended for the operating costs of the products listed in documents Nos. 2.1 and 3 of this Resolution, including for seed production, is limited to R$240,000.00 (two hundred and forty thousand reais) per product/final beneficiary, except as provided in the following paragraph.

Paragraph 4. Operating financing for cotton is limited to R$480,000.00 (four hundred and eighty thousand reais) per product/final beneficiary, observed the limit of R$240,000.00 (two hundred and forty thousand reais) provided for the product equivalence.

Paragraph 5. The limits referred to in paragraphs 3 and 4 of this article are enforceable only in financing granted with resources subject to a financial cost fixed by the National Monetary Council.

Article 3. Operating financing for cotton, rice, beans, cassava, corn, and soy must be granted based on product equivalence, according to the conditions provided in this article.

Paragraph 1. The credit instrument must contain a clause establishing that equivalence will only be effective if:

I - the product is deposited in a warehouse accredited by the National Company for Supply (CONAB);

II - the credit borrower opts for the settlement of the debt by the due date, through the delivery of a document representing the storage of equivalent units of the financed product, which will be subject to Direct Federal Acquisition (AGF) or Federal Loan with Sale Option (EGF/COV).

Paragraph 2. The direct AGF operation is restricted to miniproducers and small producers.

Paragraph 3. The financing referred to in this article is limited to R$240,000.00 (two hundred and forty thousand reais) per product/final beneficiary.

Paragraph 4. The quantity of equivalent units of the financed product, to be determined at the time of the first release of credit, is the sum of the results of the following operations:

I - division of the total value of the financing, plus expenses related to the PROAGRO surcharge and the cost of technical assistance, by the minimum price;

II - division of the value corresponding to the application of the effective interest rate of the financing, calculated for each release of credit until the maturity of the operation, by the minimum price.

Paragraph 5. In the operating financing of cotton or cassava, the norms issued by CONAB must be considered for the determination of the quantities of equivalent units to lint cotton or flour, starch, peelings, or cassava gum.

Paragraph 6. In the settlement of operating financing, physical or financial compensations must be made based on:

I - classification of the deposited product, observing the CONAB norms applicable to AGF or EGF/COV;

II - release of resources on a date not coinciding with the scheduled one when determining the quantity of equivalent units of the financed product.

Paragraph 7. In operating financing of crops of products intended for seeds, equivalence must be formalized based on the minimum prices of the respective grains intended for consumption.

Paragraph 8. Financing with product equivalence and marketing may be formalized in a single credit instrument, in accordance with Resolution No. 1,915 of March 12, 1992.

Paragraph 9. For the purposes of the preceding paragraph, the balance determined based on the criteria of product equivalence must be considered a Federal Loan with Sale Option (EGF/COV) from the delivery of the merchandise deposit document.

Paragraph 10. Product equivalence is mandatory in financing granted with resources subject to a financial cost fixed by the National Monetary Council and optional in other rural credit operations, including those contracted with resources from the Constitutional Funds.

Article 4. The Central Bank of Brazil is authorized to make the adjustments deemed necessary for the execution of the measures provided for in this Resolution, after hearing the Secretariat of Agricultural Policy of the Ministry of Agriculture, Supply, and Land Reform, and the Secretariat of Economic Policy of the Ministry of Finance.

Article 5. This Resolution enters into force on the date of its publication.

Article 6. Resolutions Nos. 2,009, 2,031, and 2,052, dated July 28, 1993, November 25, 1993, and February 23, 1994, respectively, and Circular No. 2,356 of August 11, 1993, are hereby revoked.

Brasília, August 24, 1994

Pedro Sampaio Malan
President

Note: The attached documents referred to in this Resolution will be available to interested parties at the Regional Delegacies from August 29, 1994.

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Note: Re-transmitted due to an error in paragraph 4 of Article 2 of the Resolution.