Brazil launches MP to renegotiate roughly R$ 100 bn of rural debts
On 15 July 2026 the Brazilian government published Measure Provisional (MP) 1.376/2026, replacing a pending bill. The MP creates a program that allows producers and cooperatives that suffered losses between 2019 and 2025 – due to extreme weather or price drops – to renegotiate about R$ 100 billion of rural credit. Eligibility requires proof of loss (≥30 % reduction in gross income for two harvests, or ≥40 % for three). Terms include no down‑payment, a grace period of up to two years, and repayment periods of eight years for regular cases and ten years for severe losses. Interest rates are tiered by producer size: 6 % (Pronaf), 9 % (Pronamp) and 12 % (others) for standard cases; 5 %, 8 % and 11 % respectively for severe climate‑related losses. A guarantee fund modelled on the FGC, funded up to R$ 2 billion by the Union and open to state and municipal contributions, will back the credit lines. The MP also authorises the renegotiation of rural credit certificates (CPRs) and sets penalties for fraud, including repayment of received benefits and a five‑year ban on subsidised credit. The measure is expected to impact a large share of Brazil’s agribusiness sector while limiting the fiscal cost to about R$ 3.6‑4 billion per year.