» Purpose

Spread out the concept of sustainable and accountable agribusiness, adding efficiency, good production practices, social responsibility and environmental protection;

Encourage environmental sustainability actions in the agribusiness;

Encourage reclamation of lands, such as grazing lands, to increase farming production, on sustainable bases;

Support registration of rural lands within environmental legislation (legal reserve, permanent restoration areas, waste handling and others);

Decrease pressure on deforesting of new áreas to expand farming activities in degraded áreas under recovery process;

Assure conditions for the rational and sustainable use of croplands and grazing lands, decreasing environmental problems; and 

Enhance support to sustainable production systems, such as the organic system of farming production. 


The operations will be carried out through accredited financial institutions.


» Clients

Rural producers (individuals or legal entities) and their associations, which may also transfer the benefits to the association members.


» Eligible Items

Fixed and semi-fixed investments related to:

Implementation of organic systems of farming production, including services and inputs for the conversion period and certification, such as registration, inspection and maintenance, and other items;

Implementation and enlargement of agriculture and cattle-raising systems, or agriculture, cattle-raising and forestry - ILPS, comprising: 

- adjustment of soil for crop raising, involving soil preparation, purchase, transport, application and use of agricultural amendment agents (limestone and others), marking and construction of slopes, relocation of roads and planting of soil coverage crops; 

- purchase of seeds and saplings for grazing lands; 

- implementation of grazing lands and forests; 

- construction and modernization of improvements and facilities for production inthe integration system; 

- purchase of machinery and equipment for agriculture and/or cattle-raising, related to the integration project under the financing arrangement, non-financeable by the Program for the Modernization of Agricultural Tractors and Related Implements and Harvesting Machines - Moderfrota; 

- purchase of cattle, ovine, and goats for reproduction, breeding and slaughtering; 

- purchase of cattle, ovine, and goat semen; and 

- technical assistance. 

correction of soils and use of wetlands incorporated to the production process and projects for environmental adjustment of rural lands into the legislation in force: 

- precision agriculture services, ranging from initial planning for soil sampling to generating maps for the application of fertilizers and soil acidity correction, including: mapping; planning, collection and analysis of soil samples; analysis of sampled data; assessment of productivity and design of maps; remote sensing and imaging; land and soil demarcation and alignment; implementation of precision agriculture and application of fertilizers, soil corrections and inputs;

- purchase, transport, application and use of liming materials (limestone, phosphogypsum and soil correction fertilizers); 

- expenses incurred with green manuring; 

- implementation of conservationist soil practices; 

- investments set out in specific technical project as required to include wetlands into the production process; 

- reclamation of grazing lands (cleaning; implementation and refurbishing of fences in areas under reclamation, purchase of fence energized wires, purchase and sowing and forage seeds and purchase, construction and refurbishing or small water fountains and saltshakers or salt containers); and 

- environmental adjustment of rural lands, namely replenishment of Legal Reserves and Permanent Preservation, including production systems implemented under the sustainable forest handling system in the Legal Reserve Areas. 

Funding related to investment, limited to 30% of the financed amount. 


» Interest Rate

5.75 % p.a., for projects intended to reclaim lands, including pastures; and 
6.75 % p.a., for other cases. 
Such interest rates include the accredited financial institution spread, de 3% p.a.


» Level of Participation

Up to 100%  


» Financing Limit

up to R$400 thousand, per client, for production projects intended to reclaim lands; and 

up to R$ 300 thousand, per client, in the other cases. 

Financing limits may be 15% higher for Beneficiaries proving existence of Legal Reserve registered and Permanent Preservation Areas, in the land where the project will be installed, as provided in the Brazilian Forest Code, or have a reclamation plan in place with the consent of the State Office of Environment, managed by the Brazilian Institute of Environment and Natural Renewable Resources (IBAMA) or the State Public Prosecutor's Office.

The Program’s credit limits do not exclude each other and do depend on other credits taken from funds rural credit controlled funds.

It is allowed to grant more than one credit to the same borrower, up to June 30, 2010, when the supported activity requires and if it is proven that the Beneficiary has payment capacity; and the sum of the amounts does not exceed the credit limits set out for the Program.


» Term of Loan

up to 144 months, including maximum grace period of 36 months, for production systems of agriculture, cattle raising and forestry. Such maturity however, may only be allowed when forestry is present; 

up to 60 months, including a maximum of grace period 24 months, when the loan is exclusively intended to amend soils; and 

up to 96 months, including a maximum grace period of 36 months, for the other cases. 

The principal payment may be paid on a semiannual or annual basis, to be defined according to the beneficiary land’s funding receipt.

During the grace period, interest rates are not to be incurred. These will be capitalized as often as the principal is paid up, as previously agreed. During repayment stage, interests will be paid together with the principal.


» Guarantees and Collaterals

For separate financing of machinery and equipment, the goods must be financed under property held in trust or pledge, to be kept until the agreement termination.

For other items, collaterals will be at the sole discretion of the accredited financial institution, respecting the relevant standards issued by the Brazilian Central Bank.

Pledge of credit rights from financial investments will not be allowed as collateral.

See: Collaterals


» Expiration Date

June, 30, 2010, within budget limits. 


» Application

Applicants must contact an  accredited financial institution, which will inform the documents required, analyze the possibility of granting the credit and negotiate the collaterals. After the institution grants approval, the operation will be submitted for official approval and further release of funds by BNDES.


» See

Automatic BNDES