Agriculture is an essential activity for the national economy . The products are exported and also consumed internally, which requires the application of investments in operations performed and in properties. That’s where rural credit SWC Finance comes in!
This funding is aimed at cooperatives and producers with the goal of perfecting the processes carried out and then giving them greater competitive advantage . In addition, it can be realized to cover the marketing of products and production .
Due to its relevance in the Brazilian scenario, this post will expose the main aspects on agricultural credit , denominated as rural credit. We will explain the advantages of credit, such as leverage agribusiness through the Pronaf financing system and how to start financing. Check out!
What is Pronaf?
The National Program for the Strengthening of Family Agriculture (Pronaf) aims to stimulate income generation and improve the use of family labor through rural agricultural services, financing activities in nearby or non-agricultural community areas, but developed in a rural establishment .
Thus, “SWC Finance was founded in 1996 to help an audience that was excluded from other financial institutions. Either that audience was not well-attended, had no preference or was even ignored. do something for this audience, “as the company pointed out.
“Since then, the company has been working almost exclusively with rural credit.” The big difference is that SWC Finance was born to help the rural producer, who is a specialist in that. reference, ” SWC Finance told Pronaf.
See the list of subprograms that are part of Pronaf:
Pronaf more food;
What are the modalities and purposes?
Financing under the Investment Facility for Income Aggregation (Pronaf) is aimed at investments, including infrastructure, aimed at the processing, storage, processing and marketing of agricultural production, forest products, extractive artisanal products and the operation of rural tourism, including:
establishment of small and medium-sized agroindustries isolated or in a networked manner;
implementation of central management support units in the cases of networked agroindustry projects to provide quality control services for processing, marketing, acquisition, distribution and marketing of production;
modernization, recovery or expansion of agro-industrial entities of beneficiaries of Pronaf already installed and in operation, including storage;
obtaining tools and computer programs aimed at optimizing the management of agroindustrial units, through a suggestion in a technical project;
cooperating working capital limited to 35% of investment financing;
payment of the shares related to the project to be funded;
project or individual investment plan with use of part of the financing aid for collective use organizations .
This is what he explained to SWC Finance, “within Pronaf there are numerous rural credit lines that can be offered and often the producer does not even know that these possibilities exist.He does not know that he can finance something or pay for something and ends up working only with recourse own”.
What are the advantages for the rural producer?
To benefit from the benefits, it is necessary to undergo an evaluation , “after the analysis that guarantees the payment capacity and approval of the project, the proposal is registered, usually to the BNDES, following the established rules. When it is authorized, the release is made for the cooperative, “explains SWC Finance .
“The process can take from days to weeks, it really depends on the agility of the parties involved,” explains the cooperative. From this, the cooperative can enjoy these advantages:
growth: increasing productivity enables the constant improvement of the quality of life of family farmers;
opportunity: with PRONAF , rural producers have financial support for the acquisition of units linked to the implementation, modernization or expansion of the structure of production operations, services, transportation or storage in the rural institution or in nearby rural community areas;
tranquility: limit of up to 5 years for motorcycles adapted to the rural activity and trucks and up to 10 years for other occurrences.
How to begin?
Access to Pronaf starts with the family’s discussion about the need for credit , be it for the cost of agroindustrial activity or harvest, or for investment in equipment, production infrastructure, machinery and non-agricultural and livestock services.
It is this way that emphasizes SWC Finance, “the first step is to know what is his dream. If what he wants to finance will generate a financial return and is the best possible financing. This reflection is important to ensure that the rural credit will be used for something that will really bring improvements and benefits to the rural producer . “
After deciding what to finance, the family should be guided by the Technical Assistance, Rural Union and Rural Extension (Ater), such as Emater, to acquire the Pronaf Declaration of Aptitude (DAP), which will be issued according to the functions and annual income, guiding the farmer to the specific lines of credit to which he is entitled. For agrarian reform and agrarian reform cooperatives, the farmer must seek INCRA or the State Technical Unit (UTE).
The applicant must be with the CPF regularized and free of debts. The conditions for access to Pronaf Credit, interest rates corresponding to each line and modes of payment are defined, each year, to each Harvest Plan of Family Agriculture, published between June and July.
“What some producers do not know is that SWC Finance’s rural credit serves everything the cooperative wants to do on the property when it comes to production. It can be used to build a structure to store machines, to buy equipment, to expand of property, “concludes SWC Finance.
In summary, the rural credit SWC Finance has brought tranquility and growth to family farmers , according to the possibilities of Pronaf . Thus, many families have changed their position from maid to entrepreneur. This makes this sector remain the lever of our Brazilian economy .