The renegotiation of rural debts provided for in Provisional Measure No. 1,376/2026 creates credit lines for the composition of liabilities, subject to specific conditions.
What has changed in the renegotiation of rural debts
Provisional Measure No. 1,376 of 15 July 2026 authorises credit lines for the renegotiation of rural debts. The credit may be used to settle or amortise rural credit transactions and certain Rural Product Notes, known as CPRs (Cédulas de Produto Rural).
In addition, the measure seeks to address losses relating to climate events, calamities and the economic effects of international conflicts. The initiative also covers losses arising from the fall in the prices of financed agricultural and livestock products.
The credit lines are subject to the conditions established by the Conselho Monetário Nacional (CMN – the Brazilian National Monetary Council). Therefore, the statutory authorisation does not dispense with the credit analysis carried out by financial institutions.
The Provisional Measure provides for mandatory funds, equalised funds, constitutional funds and other admissible sources. Nevertheless, each source may subject the transaction to its own conditions.
There is also a credit line for amounts exceeding the main ceilings. In that case, the rates are not controlled and depend on negotiation between the financial institution and the borrower.
Who may renegotiate rural debts
Rural producers and agricultural and livestock production cooperatives may seek these credit lines, where they act as rural producers. First, they must evidence losses in two or more harvests between 2019 and 2025.
Such losses must correspond to a minimum reduction of 30% in the expected gross agricultural and livestock income. A duly qualified professional must issue a technical report evidencing the situation.
As a rule, the Provisional Measure covers working-capital (custeio), marketing and industrialisation transactions. It also reaches investment instalments falling due or matured between January 2024 and December 2026.
However, the debts must comply with the dates and the situations of performance or default set out in the rule. Transactions referred to the Dívida Ativa da União (the Federal Government’s registry of enforceable public debts) are not eligible for the programme.
The measure provides more favourable conditions for those who have suffered losses in three or more harvests. In that case, the minimum loss must reach 40% of the expected income and must result from extreme climate events.
For example, producers under Pronaf (the National Programme for Strengthening Family Farming) may have a ceiling of up to BRL 400,000 under the general rule. In exceptional climate situations, the ceiling may reach BRL 500,000.
Deadlines and exceptions for debt composition
The deadline for entering into these credit lines is up to 120 days after publication of the Provisional Measure. For this reason, producers and cooperatives should check documentation, contracts and default records at an early stage.
Under the general rule, repayment may take place within up to eight years. The first instalment amortising the principal falls due two years after execution of the transaction.
In cases of more severe climate-related losses, the term may reach ten years. Even so, the borrower pays interest during the grace period.
The Provisional Measure sets interest at 6% per annum for Pronaf, 9% for Pronamp (the National Programme to Support Medium-Sized Rural Producers) and 12% for other producers. In exceptional circumstances, the rates are 5%, 8% and 11% per annum, respectively.
On the other hand, the rule excludes transactions entered into with funds from the Fundo Social (Social Fund). It also restricts the settlement of transactions linked to Provisional Measure No. 1,314/2025, with an express exception for certain transactions involving unearmarked and earmarked funds.
Furthermore, amounts already settled or amortised prior to publication may not form part of the new transaction. Indemnities under Proagro (the Agricultural Activity Guarantee Programme) and rural insurance coverage are likewise excluded from this composition.
What still depends on regulation
The Provisional Measure assigns to the Conselho Monetário Nacional the task of defining additional conditions and ceilings. Accordingly, execution of the transaction must observe the operating rules and funding sources defined in the applicable regulations.
In addition, the bank will assess the transaction as new credit, in accordance with the rules of the Conselho Monetário Nacional. The institution will also apply its internal policies and assume the credit risk.
The measure allows collateral to be reviewed at the time of execution. In other words, the collateral may be reduced if excessive, or increased if insufficient for the new transaction.
The text further authorises the participation of the Federal Government in a guarantee fund for transactions affected by climate events. However, the Executive Branch has yet to regulate essential aspects of that fund, such as quotas, guarantees and eligibility criteria.
Finally, the documentation requires particular attention. False information regarding harvest or income losses may result in loss of the benefit, restitution of amounts and future disqualifications, in addition to other liabilities provided for by law.
In short, the renegotiation of rural debts offers a regulatory avenue for restructuring liabilities, but it requires careful verification of the requirements, the collateral and the supplementary rules.
Full text: https://www.planalto.gov.br/ccivil_03/_ato2023-2026/2026/Mpv/mpv1376.htm