Brazil’s rural debt deal wins approval, but farm bloc presses for more

Brazil’s rural debt deal wins approval, but farm bloc presses for more
Brazil’s Chamber of Deputies approved Provisional Measure 1,376/2026, broadening the terms under which rural producers can refinance debts linked to repeated climate-related crop losses between 2019 and 2025. The measure now goes to the Senate, which must act before its deadline on Wednesday or the measure will expire.

The agreement emerged from negotiations between the federal government and the Parliamentary Agriculture Front (FPA). For the government and rapporteur Paulo Pimenta, the revised measure is intended to contain rising rural-credit delinquency after droughts, floods and price swings. The changes move the starting eligibility date for overdue debts from January 2024 to January 2021, extend the relevant delinquency reference date to October 2026, and loosen loss thresholds in areas covered by Sudam, Sudene and Sudeco.

The text also broadens the debts that may qualify, including certain rural working-capital operations, group Pronaf financing and financial-settlement rural product certificates. Borrowers would have up to eight years to repay, with a two-year grace period on principal; interest rates range from 6% for family farmers under Pronaf to 12% for other producers.

Agriculture-sector lawmakers described the vote as progress rather than a final solution. FPA president Pedro Lupion said, “We made significant progress in this report so that it could be approved.” Yet he and Senator Tereza Cristina maintained that a guarantee fund remains necessary to improve producers’ access to credit. “The guarantee fund is fundamental and it will not leave our radar,” she said.

The negotiated package also gained unrelated provisions during its passage, including rules involving duty-free stores, electronic vaping devices and housing-credit procedures. Those additions could complicate the Senate’s rapid review, particularly if senators amend the text and send it back to the Chamber.

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