Rural credit could increase banks' control over crops.

A change in the guarantees required in agricultural financing contracts is raising doubts about the risks assumed by rural producers when seeking financing. According to Sergio Cardoso, an analyst of the agricultural supply chain... riceAccording to Canal Pampa Gaúcho, a comparison of contracts from consecutive harvests revealed conditions that could increase banks' control over financed production.

The survey was conducted by Mônia Schluter, from the Agroplan office, who identified the replacement of the Rural Pledge Note with the Bank Credit Note with fiduciary alienation of the harvest in the contracts analyzed. While the rural pledge keeps the production under the farmer's ownership, linked to the debt, the fiduciary alienation transfers the fiduciary ownership to the creditor until the financing is paid off, preserving direct possession with the producer.

Another change observed was the increase in the required collateral, from 100% to 200% of the outstanding balance, with a five-day period for any additional collateral. Thus, a loan of R$ 2 million could require collateral equivalent to R$ 4 million. Stricter requirements for storage, handling, and marketing of the harvest were also identified, in addition to extrajudicial enforcement mechanisms.

The analysis also points to a change in default interest rates, from 1% per year to 1% per month, a condition whose validity depends on a specific legal assessment. According to Cardoso, these requirements deserve debate because productivity losses, excessive rainfall, or falling prices can precisely reduce the farmer's ability to offer new guarantees.

The analyst emphasizes that there is no claim of illegality nor any indication that the same clauses are adopted by all banks. The discussion centers on the balance between protecting credit and the financial autonomy of those who produce.