Program frees rural producers from paying financing when crops suffer losses due to weather events, pests or diseases
O (National Monetary Council) approved this Thursday (June 25, 2026) CMN Resolution No. 5,315, which updates the balance rates and additional payments paid by producers in Proagro (Agricultural Activity Guarantee Program). Here is it (PDF – 1 MB).
According to a note released by the (Central Bank) –whose members participate in the council–, the measure should allow the reduction of the average cost paid by beneficiaries, “no increase in expenses for the National Treasury”.
The program guarantees the payment of rural financing for agricultural costs when the supported crop has its income reduced by adverse weather events or uncontrolled pests and diseases. Proagro is administered by the Central Bank and operated by banks and credit unions.
The review arises from the restructuring of Proagro approved by the CMN throughout 2024, which adjusted compensation to the risk of each combination of product and region.
Hardening in inspections
The adjustments, however, also tighten the mechanisms for proving losses. Inspections must be documented with at least 3 color photos of the crop, with adequate resolution, reference points and an image with the farmer or representative on site. The photos must use technology that proves that they were taken within the geographic coordinates of the area covered by the program.
In cases of highly serious partial loss, the verification report may be completed with a single inspection. In this case, however, the value of production estimated during the visit must be considered as revenue obtained, for deduction in the coverage calculation.
The new rules will come into effect for projects included in Proagro from July 1, 2026.
THE CHILD AND INADIMPLEMENTS
The measure occurs amid the formation of a climate phenomenon with a possible impact on Brazilian agribusiness. NOAA, the United States climate agency, confirmed the presence of The Child in 2026 and projects strengthening of the phenomenon until the Northern Hemisphere winter of 2026-2027. According to the agency, there is a 63% chance of a very strong El Niño occurring between November and January.
The phenomenon alters the rainfall regime and increases the risk of crop failure in Brazil, especially in the South, due to flooding. There are also indirect impacts, such as changes in the price of agricultural commodities and increased energy costs.
The arrival of El Niño adds accumulated pressure to rural credit. Data presented by the FPA (Agribusiness Parliamentary Front) in June 2026 indicate that the rural portfolio considered “stressed” – made up of defaulted, extended or renegotiated operations – went from R$38 billion in January 2024 to R$171 billion in January 2026. In April, the value reached R$196 billion.
In Congress, the sector’s high indebtedness fuels the discussion about PL 5,122 of 2023, which creates a special line of credit for renegotiating debts of rural producers affected by extreme weather events or the impacts of international geopolitical conflicts. The text was approved by the Senate on June 10 and returned to the Chamber as it had been amended.
The text is the subject of an impasse between the legislative and the federal Executive. While the economic team of the president’s government (PT) fears the fiscal impact of the proposal – estimated at R$ 140 billion in the coming years –, the FPA, together with the sector, is pushing for the approval of the PL. According to the Parliamentary Front, the impact would, in fact, be R$65 billion over 13 years, with R$5 billion in the first year of implementation.
