Resolution CMN No. 3474 — Amends investment programs backed by resources equalized by the National Treasury with the National Bank for Economic and Social Development (BNDES)

RESOLUTION NO. 003474

Amends investment programs, backed by resources equalized by the National Treasury with the National Bank for Economic and Social Development (BNDES).

THE CENTRAL BANK OF BRAZIL, in accordance with Article 9 of Law No. 4,595, of December 31, 1964, makes public that the MONETARY COUNCIL, meeting on June 26, 2007, considering the provisions of Article 4, paragraph VI, of the aforementioned law, and Articles 4 and 14 of Law No. 4,829, of November 5, 1965,

RESOLVES:

Art. 1 The Modernization of Agriculture and Conservation of Natural Resources Program - Moderagro (MCR 13-4), established under the backing of resources equalized by the National Treasury with the National Bank for Economic and Social Development (BNDES), unifies and aggregates the Fruit Production Development Program - Prodefruta (MCR 13-5) and the Agribusiness Development Program - Prodeagro (MCR 13- 7).

Art. 2 Moderagro operations are subject to the general rules of rural credit and the following special conditions:

I - credit objectives:

a) encourage soil correction and fertilization, recovery of degraded pastures, use of floodplains already incorporated into the production process, and environmental adequacy projects for rural properties, contributing to increased productivity of areas in production, within a context of sustainability;

b) support the development of fruit species production with internal and external market potential, especially within the scope of the Integrated Fruit Production Program (PIF Brazil), as well as processing, industrialization, standardization, and other investments necessary for improving quality standards and marketing conditions for fruit products; and

c) foster the sectors of beekeeping, aquaculture, poultry farming, floriculture, sheep and goat farming, frog farming, sericulture, pig farming, dairy cattle farming, and animal defense, particularly the National Program for Control and Eradication of Brucellosis and Tuberculosis (PNCEBT) and the implementation of a bovine and buffalo traceability system;

II - beneficiaries: rural producers and their cooperatives;

III - scope: entire national territory;

IV - financeable items: fixed or semi-fixed investments related to:

a) acquisition, transport, application, and incorporation of soil amendments (limestone, gypsum, and others);

b) expenses incurred with green manure;

c) implementation of soil conservation practices and environmental adequacy of rural properties;

d) in the case of pasture recovery, in addition to the values related to the purposes mentioned in items "a" to "c": stump removal operations; implementation and recovery of fences in the areas being recovered; acquisition of fence energizers; acquisition and planting of forage seeds and seedlings; and acquisition, construction, or renovation of small waterers and salt feeders or troughs;

e) investments defined in a specific technical project as necessary for the leveling of floodplains;

f) implementation, improvement, or conversion of fruit species, allowing financing of working capital associated with the investment project, limited to 35% (thirty-five percent) of the investment value, related to maintenance expenses until the first harvest is obtained;

g) cashew tree canopy replacement activities, new plantings (rain-fed and irrigated), and seedling production, provided that early dwarf cashew varieties are used, and implementation of units for processing cashew nuts and peduncles;

h) specific technical project for the cocoa crop, prepared by the Executive Commission for the Cocoa Plan (Ceplac), as necessary for the recovery of degraded areas and grafting, stand recomposition, and infrastructure improvement, understood as construction and recovery of barge boats, dryers, fermentation houses, coolers, warehouses, and storage facilities;

i) installation of an agro-industrial unit for processing and transforming fruits into chocolates, juices, wines, jams, liqueurs, vinegars, sweets, and others;

j) installation, expansion, and modernization of storage units and systems for preparing, cleaning, standardizing, and packaging fruits and their derivatives;

l) implementation or improvement of flower crops, preferably those destined for export, including installation, expansion, and modernization of improvements and systems for preparing, cleaning, standardizing, and packaging flowers;

m) construction and modernization of improvements, equipment, waste treatment, and others necessary for water supply and feeding, related to sheep and goat farming, pig farming, poultry farming, and sericulture activities;

n) improvements and equipment necessary for the management of fixed and migratory (itinerant) beekeeping and acquisition of equipment necessary for honey production and extraction, such as hives, swarms, protective equipment, and equipment for extraction, processing, and bottling of honey and other apicultural products;

o) acquisition of machinery, equipment, and support structure installations, acquisition of nets, cables, and material for making fish traps, construction of nurseries, reservoirs, tanks, and channels, surveying and earthmoving services, destined for the production of fish, shrimp, and mollusks under aquaculture regimes, and acquisition of fingerlings and feed in the first production cycle, understood as working capital associated with the investment, and installation, expansion, and modernization of improvements, as well as systems for preparing, cleaning, standardizing, and packaging fish, shrimp, and mollusks produced under aquaculture regimes;

p) acquisition of ewes and rams;

q) development of frog farming;

r) construction of facilities for silage, fertilizer spreader, lime and liquid manure distributor, forage harvester, artificial insemination material, feed mixer, mechanical milking machine, chopper, equipment for generating alternative energy to conventional electricity, cooling tank, grinder, and forage wagons;

s) replacement of bovine or buffalo breeding stock, by rural producers who: have adhered to certification of properties free or monitored regarding brucellosis or tuberculosis, or whose properties are participating in an official epidemiological survey regarding the cited diseases; have had animals slaughtered due to positive reaction to tests detecting brucellosis or tuberculosis; meet all requirements regarding Instructional Norm No. 6, of January 8, 2004, of the Secretariat for Agropecuary Defense of the Ministry of Agriculture, Livestock, and Food Supply, and other related regulations;

t) sanitary and/or environmental adequacy project related to the activities contained in the objective of this program;

u) construction and modernization of improvements, equipment, waste treatment units, and others necessary for water supply and feeding for dairy cattle farming; and

v) investments necessary for the implementation of a bovine and buffalo traceability system;

V - resources: R$1,850,000,000.00 (one billion, eight hundred and fifty million reais), to be applied in the period from July 1, 2007, to June 30, 2008;

VI - credit limits, observing the provisions of paragraph 1:

a) up to R$200,000.00 (two hundred thousand reais), per beneficiary, when referring to financings related to items "a" to "e" of item IV;

b) up to R$200,000.00 (two hundred thousand reais) per beneficiary, for individual enterprise and up to R$600,000.00 (six hundred thousand reais) for collective enterprise, respecting the individual limit per participant, for the investments described in items "f" to "v" of item IV, provided that, when referring to financing within the scope of the PNCEBT, the credit limit for the replacement of bovine or buffalo breeding stock is up to R$75,000.00 (seventy-five thousand reais) per beneficiary, and up to R$1,500.00 (one thousand five hundred reais) per animal;

VII - financial charges: effective interest rate of 6.75% p.a. (six and seventy-five hundredths percent per annum);

VIII - repayment term:

a) up to five years, including a grace period of up to two years, for the investments provided for in items "a" to "e" of item IV;

b) up to eight years, including a grace period of up to three years, for the investments provided for in items "f" to "v" of item IV;

IX - amortizations: semi-annual or annual, according to the revenue flow of the property or financed enterprise, provided that in the case of financing destined for dairy cattle farming, amortizations may be monthly;

X - risk of operations: financial agent.

§ 1 The credit limits contained in item VI are not exclusive and are independent of other credits contracted under the backing of resources controlled by rural credit.

§ 2 The granting of more than one credit to the same borrower is admitted until June 30, 2008, when:

I - the assisted activity requires and the beneficiary's payment capacity is proven;

II - the sum of the values does not exceed the credit limits and conditions established in item VI.

Art. 3 Establish the following adjustments in the regulation of the following investment programs backed by resources equalized by the National Treasury with the National Bank for Economic and Social Development (BNDES), contained in the Rural Credit Manual (MCR 13), applicable from July 1, 2007:

I - Agricultural Tractor Fleet and Associated Implements and Combine Harvesters Modernization Program - Moderfrota, coded in MCR 13-2, renumbered to MCR 13-5:

a) include among used items financeable self-propelled, mounted, or towed sprayers with tanks above 2,000 liters and booms of 18 meters or more, planters above 9 rows, and seeders above 15 rows with a maximum age of five years, revised, and with a warranty certificate issued by an authorized dealer (MCR 13-5-1-"b"-II);

b) alter the effective interest rates to 7.5% p.a. (seven and five tenths percent per annum), in the case of beneficiaries with annual gross agricultural income up to R$250,000.00 (two hundred and fifty thousand reais), and to 9.5% p.a. (nine and five tenths percent per annum), for other beneficiaries (MCR 13-5-1-"d");

c) allocate up to R$3,000,000,000.00 (three billion reais), to be applied in the period from July 1, 2007, to June 30, 2008 (MCR 13-5-1-"f");

d) admit, observing the respective requirements, the granting of more than one credit to the same borrower until June 30, 2008 (MCR 13-5-2 "b");

e) alter the provision in item 3, whose items shall now enter into force with the following wording:

"a) if the Long-Term Interest Rate (TJLP) is set above 6.5% p.a. (six and five tenths percent per annum), the TN shall pass on to BNDES the amount equivalent to the difference between the TJLP and the rate of 6.5% p.a. (six and five tenths percent per annum), applied to the average balance of operations contracted in the period;

b) if the TJLP falls below 6% p.a. (six percent per annum), BNDES shall pass on to TN the differences calculated, also applied to the average balance of operations contracted in the period;

c) if the TJLP falls between 6% p.a. (six percent per annum) and 6.5% p.a. (six and five tenths percent per annum), there shall be no pass- through between TN and BNDES regarding operations contracted within the scope of the 2007/2008 Crop Year." (NR);

II - Irrigation and Storage Incentive Program - Moderinfra (MCR 13-3):

a) alter the financeable items to: fixed or semi-fixed investments related to all items inherent to irrigation and storage systems, including implementation, expansion, renovation, or recovery, adequacy or modernization of these items, collectively or individually (MCR 13-3-1-"c");

b) define the enterprise location as: when referring to individual credit, on the beneficiary's rural property, also admitting the establishment of the storage unit in a property distinct from where production takes place, provided it is located in the rural area and benefits the transport and storage logistics of the rural producer beneficiary of the financing; and when referring to collective credit, the storage unit shall be built in a rural area as close as possible to the production area of the credit beneficiaries (MCR 13-3-1-"d");

c) raise the financing limit to up to R$1,000,000.00 (one million reais) per beneficiary, for individual enterprise, and up to R$3,000,000.00 (three million reais), for collective enterprise, respecting the individual limit per participant, for fixed and semi-fixed investments (MCR 13-3-1-"e");

d) reduce the effective interest rate to 6.75% p.a. (six and seventy- five hundredths percent per annum) (MCR 13-3-1-"f");

e) allocate up to R$500,000,000.00 (five hundred million reais), to be applied in the period from July 1, 2007, to June 30, 2008 (MCR 13-3-1-"i");

f) admit, observing the respective requirements, the granting of more than one credit to the same borrower until June 30, 2008 (MCR 13-3-2);

III - Commercial Planting and Forest Recovery Program - Propflora (MCR 13-6):

a) reduce the effective interest rate to 6.75% p.a. (six and seventy- five hundredths percent per annum) (MCR 13-6-1-"h");

b) allocate up to R$100,000,000.00 (one hundred million reais), to be applied in the period from July 1, 2007, to June 30, 2008 (MCR 13-6-1-"l");

c) admit, observing the respective requirements, the granting of more than one credit to the same borrower until June 30, 2008 (MCR 13-6-2-"c");

IV - Cooperative Development Program for Value Addition to Agricultural Production - Prodecoop, coded in MCR 13-8, renumbered to MCR 13-7:

a) alter the wording of item XVIII of item "d" of item 1 as follows:
"d) implementation, conservation, and expansion of effluent treatment systems and environmental adequacy projects, including reforestation and acquisition of equipment for this purpose, in all types of agro- industrial units" (NR);

b) include item XXVII in item "d" of item 1, with the following wording: "XXVII - processing and manufacturing of materials originating from planted forests." (NR);

c) include item X in item "e" of item 1, with the following wording:
"X - working capital not associated with investment projects in the amount of up to R$7,000,000.00 (seven million reais), to be deducted from the credit limit per cooperative, this limit may be increased by up to 100% (one hundred percent), when destined for enterprises of the cooperative itself in other units of the federation or carried out within the scope of a central cooperative, with a maximum repayment term of 24 (twenty-four) months." (NR);

d) alter the provision in item "f" of item 1, which shall now enter into force with the following wording: "f) credit limit: up to R$35,000,000.00 (thirty-five million reais), per cooperative, for enterprises in a single unit of the federation, in one or more operations, in the period from 1/7/2007 to 30/6/2008, provided for in item 3, observing that the financing ceiling is up to 90% (ninety percent) of the project value, regardless of the gross annual revenue level verified in the last fiscal year of the cooperative;" (NR);

e) reduce the effective interest rate to 6.75% p.a. (six and seventy- five hundredths percent per annum) (MCR 13-7-1-"g");

f) allocate up to R$450,000,000.00 (four hundred and fifty million reais), to be applied in the period from July 1, 2007, to June 30, 2008 (MCR 13-7-1-"j");

g) admit, observing the respective requirements, the granting of more than one credit to the same borrower until June 30, 2008 (MCR 13-7-2-"b");

V - Crop/Livestock Integration Program - Prolapec, coded in MCR 13-9, renumbered to MCR 13-8:

a) reduce the effective interest rate to 6.75% p.a. (six and seventy- five hundredths percent per annum) (MCR 13-8-1-"f");

b) allocate up to R$200,000,000.00 (two hundred million reais), to be applied in the period from July 1, 2007, to June 30, 2008 (MCR 13-8-1-"i");

c) admit, observing the respective requirements, the granting of more than one credit to the same borrower until June 30, 2008 (MCR 13-8-2-"b").

Art. 4 Authorization is granted, with a view to obtaining greater regulatory stability and avoiding interruption in the contracting of operations under the backing of investment programs with BNDES resources, in the case of a program with a resource balance defined in the Agricultural and Livestock Plan, the granting of credit after the deadline of June 30, 2007, subject to observance of the conditions established for contracting the 2006/2007 crop season and deduction of the financed values from the availability established for the same program in the next 2007/2008 crop season.

Art. 5 This resolution enters into force on the date of its publication.

Brasília, July 3, 2007.

Henrique de Campos Meirelles
President