en.Wedoany.com Reported - The Brazilian government is formulating the 2026/2027 Agricultural Harvest Plan, with a total budget of up to 550 billion reais, and plans to reduce some rural credit interest rates to below 10%.
This scale will exceed the 516 billion reais of the 2025/2026 cycle, and President Lula is expected to officially announce it on July 1, 2026. The plan is formulated against the backdrop of multiple pressures faced by farmers in the new cycle, including low profit margins, high debt levels, unfavorable international prices, and increased climate risks in major agricultural producing regions. The funding sources for the plan include resources controlled by the National Treasury, free resources raised through Agricultural Credit Notes (LCA) and Rural Product Notes (CPR), as well as financing from public and private banks. However, the final plan still requires negotiation with the Ministry of Finance and Congress, particularly regarding funds used to subsidize interest rates, in order to provide lower rates in priority areas of planting, investment, and sales.
A record budget does not automatically guarantee the availability of funds; the key lies in whether the announcement can be translated into actually accessible credit, especially for farmers burdened by debt, limited collateral, and urgent need for funds to carry out production activities. Reducing interest rates to below double digits is a major highlight of the new plan, particularly for agricultural planting loans. The goal of lowering capital costs is linked to issues such as agricultural insurance, guarantee funds, and debt renegotiation, which are considered core topics after a series of regional crop failures, low commodity prices, and rising default rates in some areas. The final official announcement will indicate whether the plan can strike a balance between increasing credit, reducing costs, and strengthening climate risk protection. The Brazilian Agriculture and Livestock Confederation (CNA) has called for a budget of 623 billion reais, higher than current assessment forecasts, increasing pressure to launch a broad and efficiently executed plan.
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