Brazil allocates pre‑salt oil funds to agriculture debt and free transit

The Brazilian Senate approved a bill allowing the Pre‑Salt Social Fund to finance the refinancing of rural producers' debts caused by adverse weather and geopolitical price shocks. The measure sets limits of up to R$10 million per individual farmer and R$50 million per cooperative, with interest rates ranging from 3.5% for smallholders to 7.5% for larger producers, and a repayment horizon of up to 13 years. Officials warned the scheme could add as much as R$140 billion to the public fiscal burden. The proposal now moves to the Chamber of Deputies for further deliberation.

In the Chamber, a separate bill advanced that would earmark a share of oil royalties—exceeding 10% of total production (or 15% under production‑sharing contracts)—to fund a "zero‑fare" public‑transport program. Estimates put the annual cost of a nationwide free‑bus system between R$60 billion and R$90 billion. The proposal, backed by deputy Jilmar Tatto, awaits a plenary vote.

Both initiatives seek to redirect finite oil revenues toward major sectors of the Brazilian economy, pending final legislative approval.