BRAZIL Law and Practice Contributed by: Domicio dos Santos Neto, Frederico Favacho, Henrique Erbolato and Fernando Ferreira, Santos Neto Advogados
agency directly subordinate to the Brazilian Ministry of Agriculture and Livestock. The SPA’s role includes: • developing policies for rural credit, marketing sup- port, storage and supply of agricultural products; • promoting studies, diagnoses and assessments of the effects of economic policy on agricultural production systems; • conducting the Rural Insurance Premium Subsidy Programme; and • preparing and disseminating the Agricultural Zoning of Climatic Risk and the Agricultural and Livestock Plan (PAP), which is a planning and man- agement instrument for public policies for Brazil- ian agriculture. The PAP consolidates government actions, programmes and guidelines for the sector, which are essential for decision-making by rural producers and other economic agents involved in agribusiness. Rural Credit and the Harvest Plan In terms of public policy for the promotion of Brazilian agriculture, the policies to highlight are Crédito Rural (Rural Credit), Plano Safra (the Harvest Plan) and the Agro Law, which regulates private investment. Rural credit is available to rural producers, family farmers, co-operatives and other entities linked to the sector, based on obligations imposed on financial institutions (public banks, private banks, credit unions) that oper- ate specific lines of financing such as PRONAF and PRONAMP, among others. The Harvest Plan is published annually and offers lines of credit, incentives and agricultural policies for medi- um and large producers at subsidised interest rates. 2.2 Agriculture-Sector Finance Brazil’s primary agricultural financing framework is rooted in the National Rural Credit System and enhanced by modern legislative milestones such as the “Agribusiness Law” (Law No 11.076/2004) and the package integrating the Economic Freedom Law and the Agribusiness Law (Law No 13.986/2020); it has fundamentally transformed how the country’s vast agricultural sector secures capital. The objective of this legal framework is to expand access to private investment by refining regulations governing the Rural Product Note ( Cédula de Produto Rural – CPR), which
is the primary instrument used by rural producers to raise private funds, as well as other financing vehicles such as FIAGROs, CRAs and FIDCs. In addition to streamlining traditional production financing operations backed by collateral such as land, crops and other assets, the new legislation also optimises the fundraising process for various initia- tives, including regenerative agriculture and environ- mental conservation and preservation, while intro- ducing significant changes to the sector’s financial operations and collateral arrangements. 2.3 Key Authorities and Supervisory Bodies Agricultural Authorities Agribusiness in Brazil is subject to a distributed regu- latory framework involving federal ministries, regula- tory agencies, public authorities and financial regula- tors. The Ministry of Agriculture and Livestock (MAPA) is the principal federal authority for agricultural policy and sectoral regulation, including matters relating to agricultural production, animal and plant health, agri- cultural inputs, agricultural policy, and the promotion of agribusiness. Financial and Capital Markets Regulators The Central Bank of Brazil ( Banco Central do Brasil – BCB) and the National Monetary Council ( Conselho Monetário Nacional – CMN) are particularly relevant to rural credit and agribusiness finance. The BCB co-ordinates and supervises compliance with the rural credit framework, while the CMN establishes the applicable regulatory rules through the Manual of The Brazilian Securities and Exchange Commission ( Comissão de Valores Mobiliários – CVM) regulates the capital markets structures used in agribusiness, including investment funds and securitisation struc- tures falling within its jurisdiction. The National Insti- tute for Colonization and Agrarian Reform ( Instituto Nacional de Colonização e Reforma Agrária – INCRA) is relevant to rural land ownership, registration and transactions involving foreign parties. Rural Credit and related resolutions. Land and Environmental Authorities Environmental regulation is referred to federal, state and local authorities, including the Brazilian Institute
14 AGRICULTURAL LAW 2026
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