Brazil has improved its agricultural financing

Brazil is an agricultural superpower that feeds more than 800 million worldwide. To increase the guarantees and rules for the sector’s finances, the Brazilian govt approved the New Agro Law framework.

The New Agro Law seeks to reduce the bureaucracy of issuing guarantees in the private capital market, in addition to improving existing mechanisms, such as the CPR, which expand the list of rural products and their issuers.

Now, the producer and the investor also have greater possibilities and liquidity. The producer, for example, can split his property to provide a guarantee equivalent to the credit, without running the risk of losing the entire property in case of default.