Resolution CMN No. 4,900 — Consolidation of provisions in Chapters 4, 5, 7, and 12 of the Rural Credit Manual regarding special agricultural policy purposes and instruments

Resolução Nº 4.652

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

RESOLUTION CMN NO. 4,900, OF MARCH 25, 2021

Provides for the consolidation of provisions currently inserted in Chapters 4, 5, 7, and 12 of the Rural Credit Manual (MCR), regarding special purposes and instruments of agricultural policy.

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 March 25, 2021, considering the provisions of Article 4, item VI, of the aforementioned Law, Articles 4, 5, and 14 of Law No. 4,829, of November 5, 1965, and Article 5 of Decree No. 10,139, of November 28, 2019,

R E S O L V E S:

Article 1
The provisions listed in the annexes to this Resolution are consolidated in the Rural Credit Manual (MCR):

I - Chapter 4 (Special Agricultural Policy Purposes and Instruments); and

II - Chapter 5 (Credit to Agricultural Production Cooperatives).

Article 2
This Resolution enters into force on May 1, 2021.

Roberto de Oliveira Campos Neto

President of the Central Bank of Brazil

------------------------------------------------------------------------------------------------------------------------------------------------------ TÍTULO :
RURAL CREDIT
CAPÍTULO :
Special Agricultural Policy Purposes and Instruments - 4 SEÇÃO :
Producer Price Guarantee Financing (FGPP) - 1 (*)

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1 - Producer Price Guarantee Financing (FGPP) aims to allow rural producers to sell their production at a value not lower than the minimum price, for products covered by the Minimum Price Guarantee Policy (PGPM), or at the reference price, for products with a reference price established in this manual.

2 - Beneficiaries of FGPP, upon proof of acquisition of products directly from rural producers, their associations, or their agricultural production cooperatives, at a price not lower than the current minimum or reference prices, are:

a) rural producer cooperatives in the processing or industrialization activity;

b) processors and agro-industries;

c) cerealists who simultaneously perform the activities of cleaning, standardization, storage, and marketing of agricultural products.

3 - The granting of FGPP is subject to the following conditions:

a) financing base value:

I - the minimum prices fixed for products covered by PGPM, at the place of production, allowing premiums and discounts defined by the National Supply Company (Conab) according to the type and quality of the product;

II - for products not covered by PGPM, the reference values contained in MCR 3-4 and MCR 4-3;

b) if the average price paid to the rural producer exceeds by 40% (forty percent) the minimum price or the current reference price in the respective region, the financial institution is authorized to consider as the base value for financing up to 80% (eighty percent) of the average price paid to producers, duly proven by means of a sales fiscal document, except for the specific provisions applicable to operations marketed with resources from the Coffee Economy Defense Fund (Funcafé);

c) the guarantees of the FGPP operation must obligatorily incorporate, at minimum, the pledge of stored products;

d) the maturity must observe the period adequate to the marketing of the product and the revenue flow of the borrower, allowing intermediate amortizations, at the discretion of the financial institution.

4 - Beneficiaries must present to the financial institution, regarding the value of the financing referred to in this Section, the following information:

a) if the operation is carried out with a cooperative acting in the processing or industrialization activity: a list indicating, for each rural producer who sold the product subject to financing, the registration number in the Individual Taxpayer Registry (CPF) or National Registry of Legal Entities (CNPJ), the quantity acquired, the value paid, the purchase date, the harvest, the product, the municipality, and the Federative Unit (UF) of the product's origin;

b) if the operation is carried out with processors and industries that acquired production directly from rural producers: a list indicating, for each rural producer who sold the product subject to financing, the registration number in the CPF or CNPJ, the quantity acquired, the value paid, the purchase date, the harvest, the product, the municipality, and the UF of the product's origin;

c) if the operation is carried out with processors and industries that acquired production from a cooperative or association of rural producers: a list indicating, for each associate who sold the product subject to financing to the cooperative or association, the registration number in the CPF or CNPJ, the quantity acquired, the value paid, the purchase date, the harvest, the product, the municipality, and the UF of the product's origin.

5 - The information referred to in item 4 must be kept available to the Central Bank of Brazil by financial institutions linked to the respective operations, for a period of 5 (five) years, in an electronic database format.

6 - The balance of the FGPP operation must be amortized or settled upon the partial or total commercialization, processing, or industrialization of the product linked to the pledge, allowing the maintenance of the normal course of the operation, provided that the correspondence of the guarantee value in relation to the financing balance is preserved, through substitution of the pledged product:

a) by another of the same species or by titles representing the sale of these goods, observing that the maturity periods of these titles cannot be superior to the maturity of the FGPP;

b) by raw cotton or yarn made with 100% (one hundred percent) cotton, in operations whose object is cottonseed;

c) in the case of corn, by its derivatives or by swine or poultry meats, and their derivatives;

d) by derivatives of the in natura product subject to financing, in other cases.

7 - The granting of FGPP for the activities of broiler poultry farming and swine farming operated under a partnership regime is prohibited.

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TÍTULO :
RURAL CREDIT

CAPÍTULO :
Special Agricultural Policy Purposes and Instruments - 4

SEÇÃO :
Seed and Seedling Production - 2 (*)

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1 - Credit for the production of supervised or certified seeds or seedlings aims to provide resources for operating costs, investment, commercialization, and industrialization of this activity.

2 - Beneficiaries of credit for the production of seeds or seedlings are:

a) producers of basic, supervised, or certified seeds;

b) producers of supervised or certified seedlings;

c) cooperators of producers of supervised or certified seeds or seedlings.

3 - A basic, supervised, or certified seed producer is defined as a natural or legal person who engages in:

a) the multiplication of matrix seeds, in special cultivation fields, own or of cooperators;

b) the processing of own harvest or of a cooperator's harvest, for the production of supervised or certified seeds.

4 - A supervised or certified seedling producer is defined as a natural or legal person who engages in their formation, in own or cooperator nurseries, using selected matrices and under permanent care of plant sanitary defense.

5 - A cooperator is defined as a natural or legal person who promotes the multiplication of seeds or seedlings, in special fields or nurseries, through a cooperation contract with the producer or with public agencies.

6 - The approval of credit is conditioned on:

a) proof of the producer's registration with the federal public administration agency responsible or an agency representing it;

b) proof of accreditation for seed production in the previous agricultural year, allowing subsequent accreditation for beginner producers, proven during the validity of the credit;

c) presentation of a "List of Producers or Cooperators" or equivalent document, indicating the crop destined for seed production, area, location, and cultivar;

d) delivery of a copy of the cooperation contract, when dealing with a cooperator.

7 - In operating cost credit, the provisions of this manual applicable to operating cost operations and the following specific conditions must be observed:

a) financeable items:

I - multiplication: acquisition of seeds or seedlings, land preparation, planting, purchase of inputs, cultural treatments, labor, and harvesting;

II - processing: acquisition of seeds or seedlings from cooperators, reception, drying, threshing, pre-cleaning, classification, treatment, packaging, identification, and laboratory analysis for quality control;

III - distribution: storage, freight, taxes, and fees;

IV - funds for payment of inputs and technical assistance services, in accordance with the cooperation contract;

b) the reimbursement of credit must observe the production cycle and cannot exceed the beginning of the next agricultural cycle of the crop to which the seedlings or seeds are destined, respecting the following maximum periods:

I - multiplication: up to 16 (sixteen) months;

II - multiplication and processing: up to 22 (twenty-two) months;

III - processing, including distribution: up to 240 (two hundred and forty) days;

IV - distribution: up to 180 (one hundred and eighty) days.

8 - In investment credit, the general provisions of this manual applicable to investment operations must be observed, with financeable goods destined exclusively to the production of supervised or certified seedlings or seeds.

9 - In commercialization credit, the provisions of this manual applicable to commercialization operations and the following specific conditions must be observed:

a) financeable items:

I - discount of rural promissory notes issued in favor of the cooperator or producer of supervised or certified seeds or seedlings;

II - discount of rural bills of exchange drawn by the cooperator or by producers of supervised or certified seeds or seedlings;

b) the discounted title must represent the sale or delivery of seedlings or seeds from multiplication or processing proven to be own;

c) the discounter must be the initial favored party of the title;

d) the financial institution must verify whether the debtor of the discounted title received credit directly for the acquisition of seedlings or seeds;

e) reimbursement:

I - discount of titles in favor of cooperators: up to 240 (two hundred and forty) days;

II - discount of titles in favor of seed and seedling producers: up to 120 (one hundred and twenty) days.

10 - In industrialization credit, the provisions of this manual applicable to industrialization operations must be observed, with reimbursement adequate to the commercialization cycle of the resulting products, respecting the maximum period of 180 (one hundred and eighty) days.

11 - Specifically for financing destined to the processing and distribution of supervised or certified corn seeds, the following special conditions must be observed:

a) beneficiaries: seed producers (natural and legal persons);

b) financeable items: acquisition of raw material from cooperators, reception, drying, threshing, pre-cleaning, classification, treatment, packaging, identification, and laboratory analysis for quality control, storage, freight, taxes, and fees, as well as inputs and technical assistance services that the beneficiary has agreed to provide to the cooperator, in accordance with the cooperation contract;

c) period: up to 420 (four hundred and twenty) days;

d) the credit application budget may include as a financeable expense raw material originating from own production;

e) the financial institution must require and keep in its files copies of the certificates proving the seeds produced;

f) financing with periods exceeding 360 (three hundred and sixty) days are subject to adjustable financial charges, observing that any adjustment:

I - is limited to the maximum charges defined by the National Monetary Council (CMN) for the credits regulated in this Section;

II - will apply only to installments with maturity after the entry into force of new maximum financial charges defined by the CMN for the credits regulated in this Section.

12 - The approval of credit for transfer to cooperators is prohibited, unless the proposal is from a rural producer cooperative.

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TÍTULO :
RURAL CREDIT

CAPÍTULO :
Special Agricultural Policy Purposes and Instruments - 4

SEÇÃO :
Fishing and Aquaculture Activity - 3 (*)

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1 - The financing line for the exploration of fishing and aquaculture aims to provide resources for operating costs, investment, commercialization, and industrialization of this activity.

2 - Beneficiaries of the credits referred to in this Section are natural or legal persons who engage in the commercial exploration of fishing and aquaculture, including fishing vessel owners.

3 - Fishing activity comprises all processes of fishing, exploitation and exploration, cultivation, conservation, processing, transportation, commercialization, and research of fishery resources.

4 - Commercial fishing by capture is classified into:

a) industrial, when practiced by a natural or legal person and involves professional fishermen, employees, or under a partnership regime by quotas, using small, medium, or large vessels, for commercial purposes;

b) artisanal, when practiced directly by a professional fisherman, autonomously or under a family economy regime, with own means of production or through a partnership contract, landed, possibly using small vessels.

5 - Regarding fishing, the following classification regarding vessel size must also be observed:

a) small vessels: when they have a gross tonnage (GT) equal to or less than 20 (twenty);

b) medium vessels: when they have a gross tonnage (GT) greater than 20 (twenty) and less than 100 (one hundred);

c) large vessels: when they have a gross tonnage (GT) equal to or greater than 100 (one hundred).

6 - In operating cost credit, the general provisions of this manual applicable to operating cost operations and the following specific conditions must be observed:

a) financeable items: expenses inherent to fishing and aquaculture, such as capture and cultivation; conservation of vessels and equipment; conservation and rigging for fishing boats;

b) the beneficiary of operating cost credit for fish capture must prove their registration in the General Register of Fishing Activity (RGP) and their license to exercise the activity;

c) reimbursement:

I - aquaculture: up to 2 (two) years, according to the production cycle of each species contained in the plan, proposal, or project;

II - fishing: up to 185 (one hundred and eighty-five) days after the end of the closed season for the target species.

7 - In investment credit, the general provisions of this manual applicable to investment operations and the following specific conditions must be observed:

a) financeable items: capital goods necessary for the exploration of fishing and aquaculture, including the acquisition of fishing boats, even in the construction phase;

b) release of credit: according to the budget and, in the case of boats under construction, according to the construction schedule;

c) reimbursement: those defined in the Investment Credits section of this chapter that regulates rural credit operations.

8 - In commercialization credit, the general provisions of this manual applicable to commercialization operations and the following specific conditions must be observed:

a) financeable items:

I - expenses after capture and production, such as storage, insurance, handling, preservation, packaging, taxes, freight, and carriage, individually or as an extension of operating cost credit;

II - discount of titles originating from the sale or delivery of fish from own capture or production;

III - storage of the product by the fisherman, aquaculturist, their associations, or cooperatives;

IV - the supply of resources under the Producer Price Guarantee Financing (FGPP), provided that the acquisition of the product at a price not lower than the reference price defined in this Section is proven, as well as observing the other provisions applicable to FGPP;

b) reimbursement: up to 6 (six) months, except for financing under FGPP, which follows the provisions of its specific regulation.

9 - Fish or aquaculture product delivered to the cooperative by the associate is considered own capture by the cooperative.

10 - Mandatory Resources may be applied to credits destined for operating costs, commercialization, and industrialization of fish and aquaculture products, subject to the credit limits per producer established for these operations.

11 - A company for conservation, processing, transformation, or industrialization of fish and aquaculture products may only receive credit if more than half of the raw material used originates from captures made in Brazilian territorial waters by natural or legal persons of national origin.

12 - The credit instrument must stipulate, in a special clause, that the tax incentives attributed to the project are collected to amortize the debt, to the extent of the release.

13 - Reference prices for commercialization operations:

a) Aquaculture
Product	Covered Regions	Reference Prices (R$/kg)
White Pacific ShrimpLitopenaeus vannamei	Northeast
- 5 to 10 g		15.00
- 11 to 15 g		20.00
- 16 to 20 g		25.00
Carp	Center-West and North	11.10
Northeast and Southeast	7.50
South	7.00
Curimatã, curimbatá	North, Northeast, and Southeast	8.00
Lambari	Center-West and Southeast	8.50
North and South	7.30
Matrinxã	Center-West and South	6.00
North, Northeast, and Southeast	7.00
Mussel (with shell)	South	5.00
Mussel (without shell)	South	17.00
Oyster	South	7.00
Pacu and patinga	Northeast, North, and South	6.50
Center-West and South	6.00
Panga	Southeast and Northeast	5.50
Pintado, cachara, cachapira, pintachara, surubim	Southeast	8.50
North and South	9.00
Center-West and Northeast	8.00
Pirapitinga	Center-West	6.00
North, Northeast, and Southeast	6.50
Pirarucu	Center-West and Northeast	12.00
North	10.70
Tambacu, tambatinga	North and Southeast	6.50
Center-West, Northeast, and South	6.00
Tambaqui	South	6.00
Center-West, Northeast, North, and Southeast	6.50
Tilapia	North	6.00
Northeast	7.20
Center-West and Southeast	5.40
South	5.00
Trout	Southeast	17.30
b) Continental fishing
Product	Covered Regions	Reference Prices (R$/kg)
Corvina	Southeast	5.50
Curimatã, curimbatá	North	4.00
Southeast	3.20
Dourada	North	16.80
Filhote (Piraíba)	16.20
Jaraqui	5.00
Matrinxã, Pirapitinga, and long sardine	7.00
Pacu	6.50
Piramutaba	3.50
Pirarucu	8.00
Spotted sorubim	6.50
Caparari sorubim	12.00
Tambaqui	7.00
Traíra	Southeast	5.81
Tucunaré	North	5.50
c) Marine fishing
Product	Covered Regions	Reference Prices (R$/kg)
Abrótea	All	9.00
Albacora	9.50
Anchovy	11.99
Ray	5.00
Tuna	19.00
Black cod	27.00
Catfish	5.00
Potato fish	20.00
Betarra	2.50
Bonito	3.20
Shark	18.00
Seven-beard shrimp	27.50
Castanha	7.00
Wahoo	11.00
Small wahoo	6.98
Cherne	35.00
Cioba	16.00
Pink conger	20.00
Corvina	10.50
Dourada	14.00
Dourado	14.00
Swordfish	5.50
Grouper	19.00
Guaivira	1.80
Lobster	60.00
Flounder	35.00
Squid	15.00
Manjuba	9.00
Maria Mole	8.00
Hake	8.00
Namorado	30.00
Pargo	19.00
Peroá	8.00
Pescada	8.00
Yellowtail fish	19.00
Cambuçu fish	35.00
Small fish	12.00
Octopus	20.00
Snapper	35.00
Mackerel	10.00
Sardine	6.98
Crooked-mouth sardine	2.00
Lage sardine	3.00
True sardine	4.00
Mullet	8.50
Trilha	7.00
Viola	10.00
Xaréu	7.00
Xerelete	6.00

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TÍTULO :
RURAL CREDIT

CAPÍTULO :
Special Agricultural Policy Purposes and Instruments - 4

SEÇÃO :
Mechanized Services Provision - 4 (*)

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1 - Credit for the provision of mechanized services aims to provide resources for normal operating cost and investment activities of this activity.

2 - Beneficiaries of the credits referred to in this Section are natural and legal persons who prove their activity as providers of mechanized services of an agricultural nature on rural properties, by presenting the following documents:

a) natural person: registration as a contributor to the Service Tax (ISS) in the specific category;

b) private legal entity: registration as a contributor to the Service Tax (ISS) or constitutive acts (contract, statutes, among others);

c) public legal entity: the requirements of item "b" and proof of administrative and financial autonomy of its department or specialized section in the provision of services.

3 - The granting of financing to a natural or legal person exercising multiple activities is conditioned on the possibility of controlling the use of resources exclusively on expenses pertinent to the provision of mechanized services.

4 - The plan or project must state, in addition to the usual information:

a) area of operation of the proponent;

b) statement of services provided in the last biennium;

c) inventory of machines and equipment;

d) projection of service demand during the validity of the financing.

5 - The release and repayment schedules must adjust to the season for providing and paying for services, in accordance with the cycle of the target activities.

6 - The payment capacity must be estimated based on the income from all activities of the borrower.

7 - The granting of credit for the purchase of obsolete machinery or equipment is prohibited.

8 - Working capital credit for the provision of mechanized services must have a maximum term of 1 (one) year.

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TITLE : RURAL CREDIT

CHAPTER : Purposes and Special Instruments of Agricultural Policy - 4

SECTION : Financing for Price Protection in Futures and Options Market Operations - 5 (*)

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1 - Credit for Price Protection in Futures and Options Market Operations, under the commercialization credit modality, aims to provide resources for the price protection of agricultural and livestock products in futures and put options operations negotiated through a Commodity and Futures Exchange or Over-the-Counter Market, observing the following specific conditions:

a) beneficiaries: rural producers and their production cooperatives;

b) financeable items:

I - guarantee margin, additional guarantee margin, and daily adjustments in futures sales operations of agricultural and livestock products on commodity and futures exchanges or Over-the-Counter Market;

II - payment of premiums in put options contracts for agricultural and livestock products on commodity and futures exchanges or Over-the-Counter Market;

III - payment of fees and emoluments of commodity and futures exchanges or Over-the-Counter Market;

c) quantity to be insured:

I - rural producer: may not exceed the production estimate of the harvest to be harvested plus the own production kept in stock;

II - production cooperative: may not exceed 100% (one hundred percent) of the average annual reception volume of product from its active members in the last three harvests;

d) term for contracting:

I - until the end of the commercialization period of each crop, per agricultural year, with the granting of financing under the revolving credit modality permitted;

II - on the same date as the contracting of the borrower's working capital operation, if applicable;

e) release of resources: the financial institution must maintain control of the resources and subsequent financial flows, with the release occurring from the date:

I - of payment of the put option premium;

II - of the deposit of the guarantee margin in the futures market;

f) repayment: coincident with the closing of the futures market operation, or the options contract or Over-the-Counter Market contract, or the final maturity of the operation, or, in the case of item II of letter "d", the maturity of the working capital operation.

2 - With regard to the provisions in item 1, the following must be observed:

a) for the fulfillment of the exigibility, the debtor balance of the credit line granted to the producer and its cooperatives will be considered;

b) for the purpose of administering the balance of the financing line, the following criteria will be observed:

I - any positive flows resulting from daily adjustments and redemption of guarantee margin due to the closing of a position in the futures market must necessarily be used to amortize the debtor balance of the price protection financing line;

II - if the financing line is fully amortized, subsequent positive flows resulting from daily adjustments and redemption of guarantee margin will be invested in the acquisition of shares of an investment fund administered by the lending institution in favor of the financed agent, observing that the resources of said fund must be applied exclusively in federal public bonds and its administration fee may not exceed 2% a.a. (two percent per year);

III - the resources deposited in the investment fund must be used for the purposes provided in letter "b" of item 1 before new disbursements are made by the financial agent for the purpose of position adjustments with resources from the financing granted;

IV - the resources deposited as guarantee margin will be remunerated to the financed agent at a minimum rate of 90% (ninety percent) of the Selic rate;

V - it is optional for the financed agent to pay off the working capital and commercialization financing at any time, using the resources existing in the investment fund referred to in item II of this letter;

VI - in the event of using the prerogative provided in item V of this letter, any remaining resources may only be redeemed after the harvest of the product subject to the protection contract;

c) it is permitted for agents, by specific order, to reverse their position in the futures market at any time, observing that, in the case of options, neither the reversal of the position nor its exercise is permitted before 10 (ten) days of the option's maturity term;

d) it is prohibited for the financed agent, beneficiary of the financing line defined in this item, to hold a net long position for the asset subject to financing with another intermediary other than the one in which the financing line is being operated.

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TITLE : RURAL CREDIT

CHAPTER : Purposes and Special Instruments of Agricultural Policy - 4

SECTION : Poultry, Swine, and Fish Farming Exploited under an Integration Regime - 6 (*)

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1 - Financing of working capital expenses for poultry, swine, and fish farming exploited under an integration regime is admitted, exclusively with Mandatory Resources.

2 - The budget, plan, or project must be prepared in line with the general principles and conditions regarding the subject matter set forth in this manual, containing a list discriminating in an individualized manner, by name and registration number in the Individual Taxpayer Registry (CPF) or the National Registry of Legal Entities (CNPJ), the financing amount provided for each integrated party.

3 - The following concepts apply to financings exploited under an integration regime:

a) integration regime with agro-industries: contractual relationship, between integrated producer and integrators, aimed at planning and carrying out the production and industrialization or commercialization of raw materials, intermediate goods, or final consumer goods, with reciprocal responsibilities and obligations established in integration contracts;

b) integrated: rural producer, natural or legal person, who, individually or associatively, with or without the labor cooperation of employees, binds to the integrator through an integration contract, receiving goods or services for production and for the supply of raw materials, intermediate goods, or final consumer goods;

c) integrator: legal entity that binds to the integrated producer through an integration contract, supplying goods, inputs, and services and receiving raw materials, intermediate goods, or final consumer goods used in the industrial or commercial process.

4 - In enterprises exploited under an integration regime by agricultural and livestock production cooperatives, the provisions of this manual chapter dealing with Credits to Production Cooperatives shall apply.

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TITLE : RURAL CREDIT

CHAPTER : Purposes and Special Instruments of Agricultural Policy - 4

SECTION : Land and Agrarian Reform Fund Plus - 7 (*)

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1 - Financings for the acquisition of rural property, under the resources of the Land and Agrarian Reform Fund (FTRA), are subject to the provisions of Decree No. 4,892, of November 25, 2003, and the following conditions:

a) beneficiaries, provided they present an Active Declaration of Aptitude for Pronaf (DAP) or another form of family farmer registration, according to the Operational Regulation of the Land and Agrarian Reform Fund:

I - non-owner rural workers, preferably salaried employees, partners, squatters, and tenants who prove, at least, 5 (five) years of experience in rural activity;

II - owner farmers of properties whose area does not reach the dimension of the family property, as defined in item II of art. 4 of Law No. 4,504, of November 30, 1964, and which is proven insufficient to generate income capable of providing for their own sustenance and that of their families;

b) the technical financing project must:

I - demonstrate the technical and economic-financial viability of the rural activity to be explored; and

II - in the case of financings referred to in item 4, prove the need for the investments;

c) repayment: up to 25 (twenty-five) years, including up to 36 (thirty-six) months of grace period;

d) guarantee: mortgage or fiduciary alienation of the financed properties with FTRA resources, with the requirement of additional guarantees permitted if the financing is carried out with risk to the financial institution;

e) the limit of gross family income will be the monthly average of R$18,000.00 (eighteen thousand reais), not exceeding the value of R$216,000.00 (two hundred and sixteen thousand reais) per year.

2 - The annual gross family income referred to in letter "e" of item 1 will be the sum of the following values, earned by any component of the family group in the last 12 (twelve) months prior to the assessment period:

a) result of the rural activity, which consists of the difference between the values of received revenues and operating expenses and paid investments;

b) social and pension benefits; and

c) other incomes from activities developed on and off the establishment.

3 - For the purpose of defining the financial charges applicable to the financings referred to in this Section, the value of the beneficiary's assets may be increased to R$100,000.00 (one hundred thousand reais) when it is a negotiation between co-heirs of a rural property object of partition resulting from succession, provided that, at least, 80% (eighty percent) of the assessed assets result from the share of the inheritance in the property subject to financing.

4 - The financings referred to in item 1 may include, as established in the Operational Regulation of the Land and Agrarian Reform Fund, and observing the credit limits applicable to this financing line:

a) basic investments for the initial structuring of the productive units of the acquired properties, thus considered investments in basic infrastructure, including Technical Assistance and Rural Extension (Ater), according to the terms of the Operational Regulation of the Land and Agrarian Reform Fund, provided that the borrower is not benefiting from Ater within the National Program of Technical Assistance and Rural Extension in Family Agriculture and Agrarian Reform (Pronater), governed by Law No. 12,188, of January 11, 2010;

b) ancillary expenses related to the acquisition of the rural property, thus considered taxes, measurement services, including topography and georeferencing, emoluments, and court costs.

5 - The value of each amortization installment must be obtained by the Price amortization system.

6 - The resources referring to the third installment of Ater must be released until the amortization of the first installment of the financing.

7 - If the project contains Ater financing in 4 (four) or 5 (five) installments, the values corresponding to any non-releases of resources from these installments after the start of the amortization period must be deducted from one or more installments of the financing, starting from the last, prohibited, in this case, the application of the discount for advance payment of installment provided in the financial charges table in the specific section of this manual.

8 - Financing risk:

a) will be assumed by the FTRA in financings granted to beneficiaries:

I - with annual gross family income up to R$20,000.00 (twenty thousand reais) and assets up to R$40,000.00 (forty thousand reais) for families in the North region and municipalities that are part of the coverage area of the Superintendence for the Development of the Northeast (Sudene), registered in the Federal Government's Single Registry;

II - with annual gross family income up to R$40,000.00 (forty thousand reais) and assets up to R$80,000.00 (eighty thousand reais) for families from any region, except those located in municipalities in the coverage area of Sudene;

b) will be assumed by the financial institution in financings granted to beneficiaries with annual gross family income up to R$216,000.00 (two hundred and sixteen thousand reais) and assets up to R$500,000.00 (five hundred thousand reais) in any region.

9 - Remuneration of the financial institution:

a) for operations classified in items I and II of letter "a" of item 8:

I - contracting of new operations: R$458.00 (four hundred and fifty-eight reais) per operation, to be paid in the month following the contracting;

II - maintenance of operations, per month: R$19.00 (nineteen reais) per individual contract, applicable from the month following its contracting until the end of the operation's validity or its liquidation, to be paid starting from the second month after contracting;

III - notification of collection by edict: reimbursement upon proof of expense, respecting the cap of R$6,000.00 (six thousand reais) per edict, whereby, for notification with cost higher than this value, the publication of the notification must be preceded by prior authorization from the Ministry of Agriculture, Livestock and Food Supply;

b) for operations classified in letter "b" of item 8, the remuneration will be R$992.00 (nine hundred and ninety-two reais) and R$37.00 (thirty-seven reais), respectively in the cases referred to in items I and II of letter "a", maintaining the remuneration provided in item III for notification of collection by edict.

10 - The FTRA resources transferred to financial institutions while not applied in the purposes provided must be remunerated by the respective financial institution, pro rata die, by the Average Selic Rate or another index that legally replaces it, according to the following formula, with this remuneration to be paid to the Fund monthly:

REM = S(SDdaily X TXSELICdaily), where:

REM: remuneration calculated daily on the available balance;

SDdaily: daily available balance; and

TXSELICdaily: daily average Selic rate published by the Central Bank of Brazil.

11 - The resources will be applied primarily through individual financings for FTRA beneficiaries, observing the provisions of the Operational Regulation of the Land and Agrarian Reform Fund.

12 - Financial institutions operating the FTRA are authorized, based on the conditions contained in MCR 2-6-4, in cases where the borrower requests an extension and demonstrates inability to pay, to extend the installments of land credit operations with FTRA resources, including operations of the Terra Cédula Program formalized within the framework of Loan Agreement 4.147-BR, approved by Federal Senate Resolution No. 67, of July 22, 1997, with maturity in the civil year, respecting the limit per Federative Unit of 5% (five percent) of the value of installments with maturity in the respective year, in each financial institution, observing the following conditions:

a) the base for calculating the percentage of the portfolio of financial institutions subject to renegotiation is the sum of the values of the installments of all land credit financings carried out with FTRA resources in the respective Federative Unit with maturity in the year, calculated on December 31 of the previous year;

b) up to 100% (one hundred percent) of the value of the installment(s) of operations with maturity in the year may be incorporated into the debtor balance and redistributed in the remaining installments;

c) during its validity, each credit operation can only benefit from up to 4 (four) extensions referred to in this item;

d) the borrower's extension request must be accompanied by technical information that allows financial institutions to verify the triggering event of the inability to pay, its intensity, and the percentage of income reduction caused, through a form to be made available by the FTRA managing body;

e) after the maturity of the installment, borrowers will have up to 60 (sixty) days to request the extension, which, in these cases, will only be effective upon payment of 5% (five percent) of the value of the matured installment calculated without contractual compliance bonuses;

f) the installment whose renegotiation request made prior to maturity was denied will be kept in a compliant status until 30 (thirty) days after the notification of the financial institution's decision or the FTRA managing body's decision is sent to the borrower.

13 - Provided that the other provisions referred to in items 12 to 17 are met, financial institutions may extend the installments of contracts for up to 1 (one) year after the date provided for the current maturity of the instrument, maintaining the other agreed conditions, with the repayment term, in this case, exceeding 20 (twenty) years, as provided in art. 23 of Law No. 12,599, of March 23, 2012.

14 - Provided that authorized by the FTRA managing body, the limit per Federative Unit referred to in item 12 may be exceeded, respecting the national limit of up to 10% (ten percent) of the value of installments with maturity in the year, considering all operating financial institutions, maintaining the other conditions.

15 - Financial institutions must prioritize the adoption of the measures provided in items 12 to 17 for borrowers with greater difficulty in making the full payment of installments in the respective year within the established deadlines.

16 - For the effective extension referred to in items 12 to 17, the contractual alteration must be formalized within 90 (ninety) days after the date of approval of the extension.

17 - Financial institutions operating the FTRA are responsible for sending the following information to the FTRA managing body:

a) report with the value of installments with maturity expected for each civil year, sent annually until February 28;

b) report of extended operations with the value of installments and the new financing schedule sent each quarter of the civil year.

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TITLE : RURAL CREDIT

CHAPTER : Purposes and Special Instruments of Agricultural Policy - 4

SECTION : Transitional Rules - 8 (*)

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1 - Exceptionally, in the 2020/2021 agricultural year, the contracting of Financing for Price Guarantee to the Producer (FGPP), under Mandatory Resources, for the commercialization of products from commercial capture fishing and aquaculture, must observe the provisions of the section of this manual that disciplines the FGPP and the following specific conditions:

a) credit limit: up to R$65,000,000.00 (sixty-five million reais) per borrower;

b) reference price: those contained in the Fishing and Aquaculture Activity section of this manual;

c) repayment term: up to 240 (two hundred and forty) days;

d) for the purpose of proving the financed value, the following conditions must be observed:

I - regardless of the number of operations carried out, the values presented in the representative documents of the expenses incurred by the borrower must observe the limit defined for the Special Financing for Storage of Agricultural and Livestock Products (FEE) and for the Discount of Rural Bill of Exchange (DR) and Rural Promissory Note (NPR), per producer and financial institution;

II - the use of the same purchase invoice for the product for the purpose of proving different operations in one or more financial institutions is prohibited;

III - the borrower must present to the financial institution a declaration that they have complied with the conditions established in this item;

IV - the acquired limit of each rural producer and the individual limit applicable to commercialization credits taken directly by the rural producer are independent of each other;

V - it is permitted for more than one borrower of the credit referred to in this item to acquire the production of the same rural producer, observing the limits per producer provided for the FEE and for the discount of DR and NPR.

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TITLE : RURAL CREDIT

CHAPTER : Purposes and Special Instruments of Agricultural Policy - 4

SECTION : Call and Put Option Contracts as an Instrument of Agricultural Policy - 9 (*)

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1 - Call Option Contracts for agricultural products, as an alternative or complementary instrument to the offer of public stocks, are subject to the following characteristics and conditions:

a) modality: offer of Call Option Contract;

b) acquirers: any interested parties in disposing of the offered product, such as, breeders, agro-industries, agricultural cooperatives, exporters, and merchants;

c) supported products: stocks acquired within the framework of the Minimum Price Guarantee Policy (PGPM) until the date of the launch of the contracts, whose quantities must be maintained until the maturity of the options;

d) contracting and maturity period of the options: according to the agricultural calendar of each product, defined in a specific notice of sale of call option contract published by the government;

e) exercise price: calculated based on the behavior of market prices, taking into account the financial and carrying costs of the stocks, calculated between the moment of the contract launch and its exercise, in addition to the analysis of market perspectives for the date of the option's exercise;

f) premium: value that the acquirer must pay for the purchase of the contract, starting from a minimum value for the acceptance of bids in auction;

g) exercise of the option: at a single moment, at the contract's maturity, or in advance installments, as previously defined in a specific notice of sale of call option contract published by the government;

h) transfer of the contract to third parties: the transfer of ownership of the contract is permitted;

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i) registration of operations: contracts must be registered in a system for registration and financial settlement of assets authorized by the Central Bank of Brazil or in an entity that already operates the registration of operations in organized derivative markets, provided that it is specifically accredited for this purpose by said Autarchy or by the Securities and Exchange Commission (CVM);

j) form of launching call options: through public auctions promoted by the National Company for Supply (Conab), by means of a specific offer notice, which must be agreed upon between the Ministry of Agriculture, Livestock and Supply and the Secretariat of the National Treasury.

2 - The Put Option Contracts, launched by Conab as an instrument of agricultural policy, are subject to the following characteristics and conditions:

a) acquirers: rural producers and their production cooperatives, with subsequent transfer of ownership admitted;

b) premium: the value that the acquirer must pay for the purchase of the contract, with a minimum value for acceptance of bids possibly fixed;

c) contracting and maturity dates: defined at the time of launching the contracts, in consonance with the agricultural calendar of each product, observing the provisions in item 3;

d) launching: by means of public auctions, a systematic method that must also be used in any eventual buybacks and transfers of contracts;

e) registration of operations: in a system for registration and financial settlement of securities administered by an entity authorized by the Central Bank of Brazil or in an entity that already operates the registration of operations in organized derivative markets, provided that it is specifically accredited for this purpose;

f) validity of operations: transactions with the contracts will only be valid after being registered in consonance with the provisions of item “e” of this item;

g) the acquirer of the option contract may exercise the right to sell the product subject to the operation:

I - at the maturity of the contract;

II - in advance, considering the price with the carrying cost until the date of actual exercise, without the right to the additional margin referred to in item IV of item “k” of this item;

III - the maturity of the contract must always occur after the harvest period in the region where the option contract was launched, even if there is the possibility of early exercise;

h) reimbursement of expenses: in the event that the acquirer exercises the option, the same expenses that are indemnified during the formation of strategic stocks and Government Acquisitions (AGF) must be reimbursed upon the acquisition of the product;

i) receipt of the product: as defined in the contract;

j) alternatives to receipt of the product: a contractual clause may be included allowing Conab to opt not to receive the product, if the acquirer expresses interest in exercising the option, using the following alternatives:

I - buyback of the contract;

II - transfer of the contract to third parties, provided that the acquirer is assured of the necessary guarantees that the new holder will honor the obligations originally assumed by Conab, including those provided for in item “h” of this item;

III - payment of the difference between the exercise price and the market price at the time of the contract's maturity;

k) the definition of the exercise price used in the launch of Public and Private Put Option Contracts must observe:

I - the minimum price of the product in force for the crop to which the production refers;

II - estimates of costs for carrying stocks between the harvest period and the exercise date, including financial costs;

III - freight costs, when it is specified that the delivery of the product be in a locality distinct from the origin locality of the contract offer;

IV - additional margin of up to 10% (ten percent) of the minimum price, stipulated based on market expectations and when there is a need to stimulate commercialization.

3 - With regard to the provisions in item 2, it is incumbent upon the federal public administration bodies with competence on the matter to define the exercise prices for each product for the launch of options.

------------------------------------------------------------------------------------------------------------------------------------------------------ TITLE :
RURAL CREDIT
CHAPTER : Credits to Agricultural Production Cooperatives - 5
SECTION : General Provisions - 1 (*)

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1 - Credit to Agricultural Production Cooperatives aims to provide resources for the exercise and development of their statutory activities and to consolidate their patrimonial structure, observing the general provisions of this manual regarding credit lines for working capital, investment, commercialization and industrialization and the specific conditions defined in this Chapter.

2 - Credit may be granted to an agricultural production cooperative, singular or central:

a) in the condition of rural producer, aiming at enterprises owned by the cooperative, for the purposes of working capital, investment or commercialization, observing the general norms applicable to credits granted to other rural producers, including regarding the financing limits observed by producer;

b) in the condition of a society providing agricultural services to its members, exclusively for:

I - serving members, in accordance with Section 2 of this Chapter;

II - industrialization, in accordance with Section 5 of this Chapter;

III - commercialization, in the form of Discount of Rural Bill of Exchange (DR) and Rural Promissory Note (NPR), Financing for Producer Price Guarantee (FGPP), Financing for Coffee Acquisition (FAC) and Financing for Price Protection in Operations in the Futures and Options Market;

c) aiming to consolidate the patrimonial structure of the cooperative, in the following destinations:

I - subscription of partnership shares, in accordance with Section 3 of this Chapter;

II - advance of resources from retention tax, in accordance with Section 4 of this Chapter.

3 - Products received by the agricultural production cooperative from its members are considered as the cooperative's own production for credit purposes.

4 - The production cooperative must present a budget, plan or project containing, among other items required by the financial institution, detailed statements showing:

a) the compatibility of the credit with the demand presented by the members and with the operational capacity of the cooperative;

b) the application of resources in the specific purpose of the financing;

c) the distribution of service to members resulting from the application of resources related to credit;

d) the origin of the products to be acquired and the prices paid to producers, in the granting of credits in the FGPP and FAC modalities.

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TITLE :
RURAL CREDIT

CHAPTER : Credits to Agricultural Production Cooperatives - 5

SECTION : Serving Members - 2 (*)

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1 - Credit to the agricultural production cooperative for serving members may be granted with the following purposes and objectives:

a) commercialization credit: making advances to members for products delivered to the cooperative for sale;

b) working capital credit: acquisition of inputs for supply to members, such as seeds, seedlings, fertilizers, pesticides, agricultural utensils, essential consumption goods, miscellaneous materials and other products necessary for production working capital, including those intended for poultry, swine and fish farming under integration regime;

c) investment:

I - acquisition of goods for supply to members, for use in agricultural production activity, such as machinery, implements, agricultural utensils, animals, and inputs intended for intensive soil correction and other goods eligible for investment credit;

II - acquisition of goods for providing services exclusively in rural exploitations, such as machinery, implements, agricultural utensils and pure male or high-lineage breeders and other goods eligible for investment credit.

2 - The granting of credit for advances to members must be based on the evaluation of the cooperative's commercialization capacity and the estimate of the expected production by the members.

3 - In the event of cash formation by the cooperative, for advances to members, the releases of resources by the financier cannot exceed the projected demand for 1 (one) month.

4 - Unless specifically linked to the coverage of hortifruit and milk, the credit instrument for advances to members must stipulate, in a special clause, that the cooperative is obliged to:

a) remit to the financier the value of the advances, at the time it receives the sale value of the products;

b) make available, when requested by the financier, the titles originating from the sale of products on credit, for the purpose of monitoring these operations.

5 - In the application of credit for advances to members, the following must be observed:

a) an advance for production received by the cooperative is only admissible if it meets all quality requirements and is free of any encumbrance or lien;

b) the stock of products generating advances must correspond to the balance of the financing, with a rebate of the value of pledged titles, originating from sales on credit;

c) the issuance of a rural promissory note by the cooperative or the withdrawal of a rural bill of exchange by the member, for products in stock generating advance, is prohibited;

d) the cooperative must deliver to the financier a list specifying, by name and registration number in the Individual Taxpayer Registry (CPF) or in the National Registry of Legal Entities (CNPJ), the value of the advance to be destined to each member, before the release of resources, observing that:

I - the value corresponding to the difference between the total financed value and the sum of advances to members reported in the list must be disqualified from the operation;

II - for the purpose of monitoring these operations, an eventual discrepancy between the list registered in the Rural Credit and Proagro Operations System (Sicor) and that actually served by the cooperative does not constitute irregularity, provided that the documentation presented by the cooperative demonstrates that it was merely a substitution of producers or an adjustment in the volumes served;

e) the financing agent will register the list referred to in item “d” in Sicor.

6 - The credit for advances to members for products delivered to the cooperative for sale may have a maximum term of:

a) 120 (one hundred and twenty) days, when specifically linked to the coverage of hortifruit;

b) 240 (two hundred and forty) days, in other cases.

7 - The amount of working capital and investment credits for the acquisition of inputs and goods for supply to members, referred to in items “b” and “c” of item 1, must be equal to the volume of resources representative of the demand for inputs and goods presented by the members, detailed in the document referred to in MCR 5-1-4.

8 - The credit referred to in item 7 cannot be used to form stocks in excess of the projected demand for each cycle of activities of the members.

9 - The credit instrument for supplies to members must stipulate, in a special clause, that the cooperative is obliged to:

a) require that inputs delivered to the member be paid in cash, if the member has obtained financing, in any financial institution, for total or partial working capital of the crop;

b) present to the financier, up to 120 (one hundred and twenty) days before the maturity date of the operation, the list of beneficiaries by name and registration number in the CPF or CNPJ, discriminating the value of the inputs destined to each beneficiary, observing that:

I - for the purpose of monitoring these operations, the value corresponding to any difference between the total financed value and the sum of supplies to members reported in the list must be disqualified;

II - the values of inputs acquired both on credit and in cash by the members must be reported in the list.

10 - The financing agent will register the list referred to in item “b” of item 9 in Sicor.

11 - In the application of credits for supplies to members, the following must be observed:

a) the supply of inputs and goods may be effected by cash payment or, at the cooperative's discretion, by the issuance of a credit title by the beneficiary in favor of the latter, in accordance with applicable legislation;

b) the term of the titles referred to in item “a” must be adjusted to the time of obtaining the yields of the members' activities, without exceeding the maturity of the credit granted to the cooperative;

c) the stock of inputs and goods acquired by the cooperative with the credit resources must correspond to the capital balance of the debt, rebating the cost of supplies to be paid and the cost of cash supplies pending amortization.

12 - The credit for supply to members is subject to the terms indicated in this manual for working capital or investment.

13 - The granting of investment credit referred to in item II of item “c” of item 1, intended for the acquisition of goods for providing services, must be based on the operational capacity of the cooperative and the demand of the members, with the financier responsible for:

a) adjusting the repayment schedule to the forecast of payment for services by the members, based on the cycle of the destination activities;

b) obtaining from the beneficiary cooperative, at the time of contracting the credit, a formal commitment that the provision of services will be accompanied by technical assistance to the user.

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TITLE :
RURAL CREDIT

CHAPTER : Credits to Agricultural Production Cooperatives - 5

SECTION : Subscription of Partnership Shares - 3 (*)

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1 - The granting of credit to an agricultural production cooperative is admitted as financing for the subscription of partnership shares of the social capital.

2 - Resources from the credit may be applied in working capital, working capital, investment or financial restructuring.

3 - For formalization of the credit, the following is required:

a) document proving authorization for capital increase;

b) budget for application of resources, when their use in working capital, investment or financial restructuring is foreseen;

c) declaration by the cooperative that it has not received financing from another financial institution based on the same revenues, informing the eventual existence of previous debt related to capital increase.

4 - The credit must be processed through advance of resources to the cooperative itself, for the debts of members related to subscriptions made.

5 - The credit may be used all at once or in installments, according to the schedule for use of resources.

6 - The credit is subject to the following conditions:

a) at the time of subscription, the cooperative must require the member to issue promissory notes, with value and maturity equal to the installments stipulated in the subscription scheme;

b) the promissory notes must be given to the financier as collateral;

c) for use of resources, the cooperative must present to the financier, all at once or as releases occur, a list of subscribers of the shares to be subscribed, with breakdown of terms and installments;

d) at the date of use of resources, the cooperative must account for the subscription of capital, writing off the responsibility of members as debtors of partnership shares and registering them as debtors in an internal control account;

e) the repayment schedule must adjust to the maturity of the pledged promissory notes, fixing the payment of installments up to 15 (fifteen) days later.

7 - The following terms are admitted for financing, including the grace period:

a) up to 6 (six) years, for the portion of resources to be applied in fixed investment or financial restructuring;

b) up to 3 (three) years, in other cases.

8 - The following specific provisions regarding monitoring of operations by financial institutions apply to the credits referred to in this Section:

a) the subscription of partnership shares and their adequate accounting must be proven through appraisal, within a period of up to 15 (fifteen) days of each release;

b) the execution of the budget must be proven, in the case of resources to be applied in working capital, investment or financial restructuring.

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TITLE :
RURAL CREDIT

CHAPTER : Credits to Agricultural Production Cooperatives - 5

SECTION : Retention Tax - 4 (*)

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1 - The granting of credit to an agricultural production cooperative is admitted as an advance of resources originating from a retention tax levied on operations with members.

2 - The credit aims to supply the cooperative with financial resources for providing services or for investments indispensable to its adequate equipment and functioning.

3 - The credit is only admissible when it is not possible to opt for the advance of resources for the subscription of partnership shares and provided that the mobilization of revenues does not reduce future working capital availability to unsatisfactory levels.

4 - Resources from the credit may be applied in working capital, working capital or investment.

5 - The credit may cover expected revenues within a maximum period of:

a) 1 (one) year, for the portion of resources to be applied in working capital or working capital;

b) 3 (three) years, for the portion of resources to be applied in investments.

6 - For formalization of the credit, the following is required:

a) document proving the legitimacy of the retention tax (cooperative statutes or assembly minutes authorizing it);

b) statement of the retention tax collected in the last biennium and projection of revenues to be financed, indicating the triggering event (active or passive operation);

c) budget for application of resources, when their use in working capital or investment is foreseen;

d) declaration by the cooperative that it has not received a loan from another financial institution, based on the same revenues, informing the eventual existence of previous debt related to retention taxes.

7 - The credit may be used all at once or in installments, according to the schedule for use of resources.

8 - The following special provisions apply to the credit:

a) the value of retentions must be converted into capital shares, prohibiting allocation as surplus, except when it is remuneration for services provided by the cooperative;

b) the repayment schedule must be fixed based on the times foreseen for the cooperative to receive the value of retentions, requiring that revenues occurring in each month be remitted for debt amortization by the 20th day of the following month, without prejudice to the provisions in items “c” and “d”;

c) if the financing has a term not exceeding 1 (one) year, a single maturity may be established, without the need for intermediate amortizations;

d) if the financing has a term of more than 1 (one) year, a maximum grace period of 1 (one) year may be granted, requiring the remittance of all subsequent retentions, at the time of their realization.

9 - A term of up to 3 (three) years is admitted for financing, including the grace period.

10 - The following specific provisions regarding monitoring of operations by financial institutions apply to the credits referred to in this Section:

a) proof of retentions must be made through accounting appraisals at the cooperative, at least every quarter;

b) the conversion of retentions into shares and their distribution must be proven at the beginning of each financial year, by appraisal to be carried out even if the debt is liquidated before;

c) the realization of returns must be proven according to the retention flow;

d) the execution of the budget must be proven, in the case of resources to be applied in working capital or investment.

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TITLE :
RURAL CREDIT

CHAPTER : Credits to Agricultural Production Cooperatives - 5

SECTION : Industrialization - 5 (*)

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1 - Industrialization credit to agricultural production cooperatives must observe the following conditions:

a) inclusion, in the budget, plan or project, of an item demonstrating the origin of the raw material to be processed or industrialized, of which more than half must be own production;

b) destination of resources to cover expenses with labor, services, auxiliary materials, inputs, insurance, taxes and other items or charges necessary for the processing or industrialization process, excluding acquisition of the raw material to be processed.

2 - The repayment of industrialization credit must be adequate to the commercialization cycle of the products resulting from the process, respecting the maximum term of 2 (two) years for grapes and 1 (one) year for other products.