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ACCS demands tax exemption from CNA in the new Harvest Plan.

The Santa Catarina Association of Pig Breeders (ACCS) and the Secretariat of Agricultural Development of Concórdia filed, this Friday (17), an official letter addressed to the National Commission of Poultry and Pigs of the Confederation of Agriculture and Livestock of Brazil (CNA). The document, addressed to the vice-president of the commission, Deborah Gerda de Geus, presents demands for the 2026/2027 Crop Plan with the aim of guaranteeing the sustainability of independent pig farming. Currently, the sector faces compressed profit margins, chronic structural indebtedness and high economic risk.

The challenge of production costs

The document highlights that the activity suffers from intense volatility and unfavorable price cycles, generating a strong asymmetry between producer revenues and operational costs. The main challenge lies in animal nutrition, a factor that represents more than 70% of the total production cost on farms.

The producing region faces a severe grain deficit: consumption reaches eight million tons of corn, while local production is only two million tons. This difference forces producers to import agricultural inputs from the Brazilian Midwest and Mercosur countries.

Main proposals for the Harvest Plan

To mitigate financial pressure and encourage the continuation of activity, leaders in Santa Catarina have listed a series of technical demands for the next Harvest Plan:

Tax exemption: The main alternative suggested is to eliminate PIS and COFINS tax rates on grain imports from Mercosur for production cooperatives, aiming to reduce costs.

Specific credit: The sector is requesting the creation of exclusive funding lines for animal protein. The goal is to guarantee resources available throughout the year for the purchase of feed, animal health care, energy, and livestock replenishment.

Revenue Limits (Pronamp): ACCS proposes a review of the Gross Agricultural Income (RBA) criteria to prevent medium-sized producers from being automatically excluded from subsidized credit. The document warns that high gross revenue does not necessarily mean that the producer's net profit margin is high.

Risk management and insurance: There is a request for the inclusion of the sector in risk management instruments, recommending a study for the creation of margin insurance and income stabilization funds that protect pig farmers from extreme variations.

Grain storage and market: The document suggests offering credit focused on building corn stocks and constructing storage silos, as well as incentives for price hedging and long-term contracts.

Reduction of notary fees: The sector is demanding a decrease in the fees charged by notaries for registering agricultural credit contracts. The organization argues that these transactions do not constitute the purchase and sale of real estate. The high demand for physical guarantees from banks has hampered the growth of producers.

Economic importance and food security

Signed by Losivanio Luiz de Lorenzi, president of ACCS, and Vinicius Cavalli Pozzo, Secretary of Agricultural Development of Concórdia, the official letter concludes by highlighting the strategic role of the independent producer. According to the authorities, these pig farmers are fundamental for generating income and maintaining production on small and medium-sized farms.

Furthermore, they play a crucial role in supplying small and medium-sized slaughterhouses registered in the SIM, SIE, SISBI, and SIF systems, which operate outside the integration model dominated by large industries and cooperatives. The simplification of environmental regulations and financial incentives for sanitary and animal welfare improvements were also cited as vital for modernizing the production chain.

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