Resolution CMN No. 4,906 — Exceptionally Raises Working Credit Limits for Corn and Sorghum Production for the 2021/2022 Agricultural Year and Authorizes FGPP Financing for Their Acquisition

Resolution No. 4,906

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

RESOLUTION
CMN No. 4,906, OF APRIL 29, 2021

Exceptionally raises, for the 2021/2022 agricultural year, the working credit limit for corn and sorghum production and authorizes Producer Price Guarantee Financing (FGPP) backed by Mandatory Resources, when intended for the acquisition of corn and sorghum.

The Central Bank of Brazil, in accordance with art. 9 of Law No. 4,595, of December 31, 1964, makes public that the National Monetary Council, in a session held on April 29, 2021, in accordance with arts. 4, item VI, of Law No. 4,595, of 1964, and 4 and 14 of Law No. 4,829, of November 5, 1965,

R E S O L V E D:

Art. 1 The Section 7 (Transitional Norms) of Chapter 3 (Operations) of the Rural Credit Manual (MCR), contained in the annex to Resolution CMN No. 4,883, of December 23, 2020, shall enter into force with the following alterations:

“3 - It is exceptionally admitted, in the period from 7/1/2021 to 6/30/2022, that the rural working credit limit referred to in item 1 of Table 2 (Credit Limits for Financing without Linkage to a Specific Program, from 7/1/2020) of Section 1 (Financing without Linkage to a Specific Program) of Chapter 7 (Financial Charges and Credit Limits) of the MCR be raised to BRL 4,000,000.00 (four million reais), when the credit is intended for the production of corn and sorghum and for the activities of swine farming, poultry farming, fish farming, dairy cattle farming, and feedlot cattle farming.

4 - It is exceptionally admitted, in the period from 7/1/2021 to 6/30/2022, that the rural working credit limit referred to in item 1 of Table 2 (Credit Limits for the National Program for Support to the Medium Rural Producer – Pronamp, from 7/1/2020) of Section 4 (National Program for Support to the Medium Rural Producer – Pronamp) of Chapter 7 of the MCR be raised to BRL 1,750,000.00 (one million, seven hundred and fifty thousand reais), when the credit is intended for the production of corn and sorghum and for the activities of swine farming, poultry farming, fish farming, dairy cattle farming, and feedlot cattle farming.

5 - It is admitted, in the period from 7/1/2021 to 6/30/2022, the contracting of Producer Price Guarantee Financing (FGPP), with mandatory resources, when the credit is intended for the storage of corn and sorghum, observing the provisions of Section 1 (Producer Price Guarantee Financing – FGPP) of Chapter 4 (Purposes and Special Instruments of Agricultural Policy) of the MCR, and the following specific conditions:

I - credit limit: up to BRL 65,000,000.00 (sixty-five million reais) per beneficiary;

II - repayment: up to 180 (one hundred and eighty) days;

III - the beneficiary may use, for the purpose of proving the financed value, regardless of the number of operations carried out in the same financial institution, up to BRL 2,000,000.00 (two million reais) per producer, observing that:

a) the use of the same invoice for the acquisition of the product for the purpose of proving different operations in one or more financial institutions is prohibited;

b) the beneficiary must present to the financial institution a declaration that it has complied with the conditions established in this article, under the penalties of law;

c) the acquired limit of each rural producer for the purpose of the proof referred to in this item, and the limit per rural producer for the operations of Special Financing for Storage of Agricultural and Livestock Products (FEE) and for discounting Rural Bill of Exchange (DR) and Rural Promissory Note (NPR) backed by controlled resources, are independent of each other;

d) it is permitted that more than one beneficiary of the credit referred to in this article acquires the production of the same rural producer, observing the limit per producer referred to in this item.” (NR)

Art. 2 This Resolution enters into force on July 1, 2021.

Roberto de Oliveira Campos
Neto
President of the Central Bank of Brazil