Last Monday, President Luiz Inacio Lula da Silva: R $ 516.2 billion to boost agricultural production in Brazil.
Of the total, R $ 89 billion is intended exclusively for family farming, while the remainder, most prominent, will be destined for business agribusiness. Among the news, the government expanded the limit for the purchase of small machines and equipment, which went from $ 50,000 to $ 100,000, with interest rate maintained by 2.5%. For larger machines, up to R $ 250 thousand, the rate will be 5%.
It is noteworthy that agribusiness is one of the main pillars of the Brazilian economy, accounting for about 25% of Gross Domestic Product (GDP), being responsible for most exports in the country, so its modernization and sustainability are fundamental to economic growth.
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But after all, what is the crop plan?
The Safra Plan is a public policy that defines the credit lines available for each agricultural cycle, including rates, deadlines and hiring conditions. Its goal is to ensure funding for production costs, investments in infrastructure, innovation and marketing of the crop.
And what are the main impacts for the rural business community?
Credit becomes even more affordable for investment in machinery: 5% per year rates for equipment up to R $ 250,000 and 2.5% for lower values represent a historic opportunity to modernize the agricultural fleet.
Another point that deserves prominence is the encouragement of sustainability: even lower interest rates for organic crops, irrigation and agroecological production help in transition to more sustainable practices.
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On the other hand, a point that deserves attention would be about the structural indebtedness of the agriculturalist. This means that even with low interest rates, hiring a higher volume of credit can increase the leverage of the rural company that is, how much it depends on third party resources to finance its operations. This risk becomes even higher in risk harvests, such as when drought, excessive rain or pests, which can reduce production and, consequently, revenue. In addition, in periods with tighter profit margins, the cost of debt may compromise the financial health of the business.
Therefore, it is essential that the producer makes financial planning, considering pessimistic scenarios and keeping reserves to face unforeseen events, preventing credit from being a solution and becoming a problem.
How can XP Enterprises support your business at Agro?
At XP Companies, we see the Plan Safra as a strategic framework for the modernization and expansion of Brazilian agribusiness. But we also understand that this moment requires careful analysis, financial planning and intelligent credit structuring. Therefore, we are next to the producer and the rural entrepreneur with a consultative, strategic and transparent approach.
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With this, the crop plan can be considered as a bridge between the present and the future of Brazilian agribusiness. However, it is up to the industry entrepreneurs to take advantage of this opportunity with a strategic vision, long -term planning and specialized support.
On purpose…
Let me open a brief parenthesis to introduce myself:
I have graduated in business administration and started my career for 20 years in one of the largest financial institutions in the country, working in the commercial area throughout this period. Interestingly, I always had the dream of being a journalist, connecting information to the public and giving voice to the art of communication.
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At that time, opportunities in the financial market spoke louder and after going through four financial institutions, in 2018 I joined XP as an investment specialist in the corporate area and creation of the XP Enterprises. In 2020, I became a partner of the house and during the pandemic, we realized a great pain from entrepreneurs: doubts and great difficulties in managing the cash of their companies.
It was then that, almost by irony of destination, I began to use communication to give voice to these challenges, presenting solutions through lectures in various cities and business associations. A market where small and medium -sized companies were poorly valued, often ignored by the country’s main financial institutions. Together with the team of XP Enterprises, we broke this universe, bringing consultative financial information to small and medium entrepreneurs.
Even inside a bank, my journalistic vein became my main work instrument, conducting various podcasts, teaching courses and classes for the PJ public. Communication is no longer just a job and has become a purpose: helping, warning and bringing good practices that can turn the lives of entrepreneurs, companies and families. This is magical!
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And what was a dream, today is reality.
Closing the parenthesis…
I will be here to share not only the main events that impact the PJ universe, but also to highlight the effects on the entrepreneur and the ways for more efficient management.
If you are an entrepreneur or want to understand more about this segment, the invitation is done: Join me to connect what happens in the country with what needs to happen in business management.
Until next time!
