Government launches 2019/2020 Safra Plan

On Tuesday (06/06), the federal government launched the 2019/2020 Safra Plan to support national agricultural production by supporting small, medium and large producers. For this, the plan foresees an investment of R$225bn, of which R$222.74bn will be for rural credit (funding, commercialization, industrialization, and investments), R$1bn for the Rural Insurance Premium Grant Program, and R$1.85bn for marketing.

A novelty for the 2019/2020 Safra Plan is creation of the Fraternal Guarantee Fund (FAF), which aims to facilitate rural producers’ debts with banks, distributors or agro-industries. In total, the BNDES already has R$5bn for these renegotiations. In addition, small farmers will have R$500m available to finance the construction or renovation of housing. These resources will allow for the construction of up to 10,000 houses.

Another new initiative in the 2019/2020 Safra Plan is to allow the producer to offer part of his property as a guarantee for agricultural financing.  Currently it is only possible to offer the entire property as a guarantee.

Source: Ministry of Agriculture

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