The relative share of agricultural business activities in the domestic production is one of the main indicators of the importance of this sector. The farming sector presented 8% share in the Brazilian GDP, reaching R$ 520 billion in 2005.
In addition to driving the productive expansion, farming plays another role of significant importance for the Brazilian economy: as the main generator of trade balances for the country. According to data from the Ministry of Development, Industry and Trade [MDIC/SECEX] and the Central Bank of Brazil [BACEN], the farming trading balance reached US$ 38.4 billion in 2005. The farming good trading performance in recent years has been contributing to a significant reduction in the Brazilian economy's external vulnerability.
» Items subject to restricted support
Cultural expenses and deals for the farming sector, until the first harvest/crop, provided that they are associated to fixed investments destined to the implementation of
cultures.
Sugar and/or alcohol plant or with a producer integrated to a plant (indirect automatic support).
Bovine beef cattle, when destined to the production of calves.
Acquisition of matrices and reproducers, only when connected to investment projects.
Formation or reformation of pastures, only when connected to investment projects.
Investments in endeavors dependent of wood as main raw material, provided that this wood comes from a planted forest; in case the wood comes from a native forest, subject to the existence of a Sustainable Forest Handling Plan, approved by the competent environmental agency, and a Forest Certification or Custody Chain Certification, issued by an independent agency with public credibility.
Investments in endeavors associated to the exploration of primary vegetation or native species, subject to the existence of a Sustainable Forest Handling Plan, approved by the competent environmental agency, and a Forest Certification or Custody Chain Certification, issued by an independent agency, with public credibility.
Investments related to planted forests, performed by the Beneficiary or by integrated rural producers connected to its forest investment programs, subject to an environmental licensing by the competent agency.
» Agricultural Programs
BNDES, in articulation with the Ministries of Agriculture, Cattle Raising and Supply, and of Agrarian Development, and the Ministry of Finance, develops specific supporting instruments to the farming sector. The
Agricultural Programs aim at developing the sector through financing at fixed rates and financial charges equalized by the National Treasury. The conditions are set up by means of Central Bank instructions and the operation is made by BNDES. Except for the National Program for the Strengthening of Family Agriculture [PRONAF], which is managed by the Ministry of Agrarian Development, all the others are under coordination of the Ministry of Agriculture, Cattle Raising and Supply.
The main program is the Program for the Modernization of the Agricultural Tractor Fleet and Related Accessories and Harvesters [MODERFROTA], which finances the acquisition of agriculture tractors and associated implements, harvesters and equipment, in addition to machinery for preparation, drying and processing of coffee. For the acquisition of equipment, machinery and agricultural implements not included in MODERFROTA, the BNDES Special Agricultural Financing Program, which does not count on the equalization of financial charges by the National Treasury, finances enterprises of any size, cooperatives and even individuals. One of the initiatives of higher social range is PRONAF, which aims at providing financial support to activities conducted upon direct employment of labor from the rural producer and his family.
» BNDES financing lines to support investments in the farming
sector
Support to acquisition of farming capital goods - See: FINAME Agrícola
Support to farming sector projects, covering fixed investment, including machinery and equipment and associated working capital is put in operation by means of
FINEM and present the following financial
conditions:
| BNDES Spread (% p.a.) |
Financial Cost |
Maximum Share (%) |
| 1,3 |
TJLP (maximum of 80%)
IPCA or (US$ or UMBNDES) + ECM (minimum of 20%) |
80 (*)
70 (**)
60 (***) |
(*) Low-income Cities or Lower Average Income Cities located in the North or Northeast regions (cities within SUDENE (Superintendência do Desenvolvimento do Nordeste — Special Office for Brazilian Northeastern Region Development)
(**) Upper Average Income and High Income Cities from the North and Northeast regions (cities within SUDENE) or Low-Income Cities or Lower Average Income Cities from the other Brazilian regions
(***) Other cities
 BNDES Automatic
FINAME
Leasing
FINAME
|
