The federal government of Brazil is poised to launch the Desenrola Rural Debt Relief Program, targeting the financial burdens faced by small farmers and family agricultural producers across the nation. This initiative was introduced by Senator Mecias de Jesus and aims to facilitate debt renegotiation for up to one million producers, allowing significant discounts on their obligations.
According to the project's details, unveiled recently during an interview on the program A Voz do Brasil, the Desenrola Rural program proposes discounts of up to 85% for farmers with annual gross incomes of up to R$ 50,000. Minister of Agrarian Development and Family Agriculture, Paulo Teixeira, emphasized the need for this program as many agricultural operations have struggled financially due to adversities, including the COVID-19 pandemic.
“The president Lula is launching the Desenrola Rural as part of his efforts to revitalize the agriculture sector and assist those who have found themselves with unpaid debts,” Teixeira stated. The program particularly focuses on beneficiaries of the National Agrarian Reform Program (PNRA) and aims to regularize debts for those registered under the National Program for Strengthening Family Agriculture (Pronaf), many of whom have their debts recorded with the National Debt Register.
The core objective of the Desenrola Rural initiative is to enable farmers to exit negative credit scores, which has severely limited their access to new financing options necessary for sustaining agricultural production.
The proposed law, known as PL 2.691/2024, stipulates the renegotiation would last three years from the date of the law's publication. The renegotiation process will prioritize those facing challenges due to climatic disasters as well as market issues. According to Senator Mecias de Jesus, the program is envisioned to provide relief and support recovery for farmers whose livelihoods have been impacted by external factors over the past several years.
“Renegotiation of debts will enable them to restructure their financial obligations, alleviating immediate pressure and allowing for the continued investment and enhancement of their products,” he asserted.
Key features of the program include the establishment of a Central Registry for Overdue Debts of Small Farmers within 180 days of the law's passage. This electronic system will gather information on outstanding debts and facilitate the negotiation process. Operational costs will be covered by fees collected from participating financial institutions.
Financial institutions authorized to operate under the federal agricultural credit programs will have the opportunity to participate as financial agents within the Desenrola Rural framework. They will also be able to derive credit allowances for corporate tax assessments as part of the debt renegotiation costs they assume.
Senator Alan Rick, who has been active on this bill, introduced amendments proposing the creation of the debt registry be permissive rather than mandatory, noting the need to avoid potential legislative pitfalls concerning organizational structure. He also proposed removing certain demands on payment flows for new credit operations, asserting the agricultural financing process should reflect the cyclical nature of crop production and marketing.
Another significant aspect of the government's agricultural initiatives includes the Terra da Gente program, which seeks to expand agrarian reform. Announcing its goals earlier this year, the program has a target of integrating over 324,000 families by 2026. This entails securing public and private lands for agrarian reform, thereby not only providing access but also encouraging inclusive production practices across traditional communities including indigenous and quilombola peoples.
Paulo Teixeira highlighted this interconnection during his recent announcements, saying, “This concurrent approach not only yields fresh agricultural opportunities but also addresses long-standing land disputes.”
The Desenrola Rural program stands as part of Brazil’s broader strategy to bolster its agricultural sector, reflecting the government's commitment to supporting small-scale agriculture through comprehensive financial restructuring and strategic land use policies. These measures are anticipated to reinforce food security and contribute to income stability for millions of Brazilian families engaged in agriculture.
