Those who live in the countryside know that it is essential to obtain financial resources on favorable terms. For this reason, rural credit plays an important role in ensuring that family farmers have a good quality of life.

In this post you will understand how rural credit works , who can hire you, will know the procedures to request it and have information on the documents needed to get it.

We highlight the types of guarantees that can be offered by farmers to obtain the resource. The documentation that must be presented to the Financial Institution to have access to rural credit , among them the Declaration of Aptitude to PRONAF (DAP) and the Rural Environmental Registry – CAR.

We will also show the actions used by financial institutions to control the use of resources granted to entrepreneurs . Check out!

What is rural credit?


The Brazilian financial market presents several lines of financing for workers in the rural area . In general, they have a lower interest rate than loans granted for other economic activities.

One of the reasons is the public sector’s incentive for rural credit, which consists of loans and loans directed to people living in the countryside . Financial resources are offered under more favorable conditions in relation to items such as interest, installment payment periods and grace period (time to begin payment of installments after signing the contract).

Tip: 5 advantages of cooperative loans compared to banks

Rural credit is used to finance the marketing and production of agricultural products. This covers the storage, processing, industrialization and modernization of activities in the field.

The objectives of rural credit are also considered:

  • the stimulus for rural investments aimed at non-predatory extraction;

  • the improvement of the conjuncture for the commercialization of agricultural products;

  • the strengthening of the rural sector;

  • encouraging the introduction of agricultural production methods that prioritize increased productivity, soil conservation and improvement of the quality of life of those living in the countryside;

  • the focus on the acquisition and regularization of rural properties by small farmers and other workers who work in the rural area;

  • the development of forestry and fishing activities that generate employment;

  • the encouragement of rural tourism and crafts to increase the income options of those living in the countryside.

Rural credit is divided into 3 modalities:

  • current ,   where the financial resources are allocated to rural workers to improve production without any kind of technical assistance;

  • educational , in which the objective is to improve agricultural production and provide technical assistance through a project or plan aimed at the guidance of the rural worker;

  • especially where resources are directed to the cooperatives of farmers and can be used for entity’s shares or associates. In addition, they may be employed in agrarian reform settlements.

Rural credit is very important to cover the expenses of the productive cycles. In addition, it allows for investments in goods or services that can be used by farmers over a long period .

For marketing activities, this type of credit is essential for a number of factors, such as:

  • cover expenses after the harvest of what was actually produced;

  • to enable the processing and industrialization of agricultural production;

  • to make credit unions and farmers less expensive to dispose of production, reducing costs and making it possible to offer attractive prices to the target audience.

Of course, rural credit plays a very valuable role in enabling farmers to be more productive and financially productive .

Who can contract rural credit?


The rural producer (individual or legal entity) and cooperatives for those working in the field may benefit from this type of credit. In the agricultural segment, productions of various items can be contemplated, such as:

  • sugar;

  • cotton;

  • peanut;

  • coffee;

  • sugar cane;

  • bean;

  • orange;

  • manioc;

  • corn;

  • Soy;

  • tomato;

  • wheat;

  • grape;

  • and others that generate employment and income in agricultural production.

In the livestock segment, rural credit may involve a number of initiatives, such as poultry, dairy and beef cattle breeding, goat breeding, sheep and poultry farming.

Even a natural or legal person not considered a producer in the field can benefit from rural credit . To do this, you must perform the following activities:

  • research or production of seedlings or seed, provided that they undergo inspection or certification;

  • research or production of semen to perform artificial insemination and to develop embryos;

  • provision of mechanized services in rural properties with agricultural objectives. These actions may even focus on soil protection;

  • services aimed at artificial insemination in rural properties;

  • provision of services for the measurement of crops;

  • execution of forestry activities.

Tip: All you need to know about rural credit

In commercialization, rural credit can also reach several workers and segments, such as:

  • beneficiaries and agroindustries that act in the processing or industrialization of the product, if they prove that they bought the raw material of producers or cooperatives for a price not inferior to the minimum fixed to calculate the financing;

  • cerealists who do at the same time the services of storage, marketing, cleaning and standardization of agricultural products.

Foresters can also benefit from rural credit. If they are not emancipated, they must be accompanied by the National Indian Foundation (FUNAI), which must also participate in the signing of the loan or financing agreement.

Foreigners living abroad, rural unions and partners can not be considered with rural credit . In the latter case, this happens when the partnership contract limits the access of any of the members to the financing.

The rural credit concession takes into account the classification of rural producers (individual and legal) based on Gross Annual Agricultural Revenue (RBA). If it is not applied or in cases of expansion of activities, the estimated annual revenue that divides the workers can be used as follows:

  • small producer (up to 360 thousand reais);

  • average producer (over 360 thousand reais and up to 1,76 million reais);

  • producer (more than 1.76 million reais).

It is noticed that there is a great variety of rural workers who can benefit from loans or financing . Before you pick up a line of credit, it is essential to understand how to use it. The recommendation is to ask questions with credit unions , which have a more targeted work for those who carry out economic activities in the field.