Brazil authorizes R$ 100 billion in rural debt renegotiations

The Brazilian Ministry of Finance has authorized financial institutions to begin renegotiating up to R$ 100 billion in rural debts under Provisional Measure (MP) No. 1,376/2026. This initiative aims to support farmers affected by extreme weather events, such as droughts and floods, or by the devaluation of agricultural commodities.

The program, regulated by Ordinance No. 2,423/2026, includes interest rate equalization subsidized by the National Treasury. It covers various producer levels, including family farming (Pronaf) and medium-sized producers (Pronamp), with rates starting at 5% per year. Terms allow for up to 10 years for repayment and a grace period of up to 2 years.

Despite this authorization, agricultural entities in Mato Grosso, including the Federation of Agriculture and Livestock of Mato Grosso (Famato), report difficulties in accessing these conditions. Producers claim that while the measure is official, essential steps—such as a Ministry of Finance ordinance for interest rate equalization, BNDES circulars for investment operations, and the regulation of the required guarantee fund—have not been fully completed. These delays raise concerns regarding the time available for documentation and bank processing before the next planting season.