Credit to the farmer is Lite loan’s specialty. The institution knows the great growth potential of agriculture and is keeping an eye on it, but at the same time, it knows that the machinery, inputs and raw materials available on the market require considerable consideration from the producer. And this is not always so easy to put into practice.
Therefore, Lite loan collaborates to change this reality. So, if the farmer is in need of borrowed money to finance production cycle expenses or to support crop costing, Lite loan’s cooperative system provides property-specific financing lines for all sizes and situations.
In this post we will explain everything about crop costing credit : how it works, what are the advantages, what types are offered in the market and how should the return be. Keep up!
What are the advantages of using the loan to pay for the crop?
The cooperative farmer in Lite loan also becomes her owner. This is the idea of the Lite loan system as a cooperative: all its members belong to the institution as owners themselves, not just as customers.
But this is just one of the advantages that the farmer gets by cooperating with Lite loan. There are some other personal and financial benefits that only the institution offers. Check it out!
Reduced Interest Rates
The cooperative offers one of the most attractive interest rates in the market for credit lines. Many options, for example, do not charge fees for some of the services , such as sign-up, ticket provision, and transfers, unlike other banking institutions.
In addition, withdrawal fees are also always lower than those charged by traditional banks.
Higher than market income
For the producer who has saved income, the cooperative offers several possibilities of applications and investments.
One of them, for example, allows time deposits, with more attractive interest rates than many products offered in the financial market.
As already mentioned, the member is considered one of the owners of the cooperative . But this is not just on paper or in theory. By becoming the owner of the business, it becomes serviced as such, in fact.
It also gives him the assurance of negotiating with an organization that will return some portions that concern him whenever there is surplus. This return can, by the way, be made by means of money or, by means of payment of shares, but this will depend on what was previously discussed and agreed at the shareholders’ meetings.
Subsidized rural credit resources from the Harvest Plan
Subsidized rural credit resources are those intended to cover agricultural production. Therefore, if this is the case with the producer, the interest rates on the loan are fixed in advance and may vary depending on the credit line chosen.
- Pronaf Costing: rates may vary from 3% per year to 4.60% per year;
- Pronamp Costing: rates are 6% per year;
- Costing for large producers: rates are 8% per year.
What are the farmer loan options that are available today?
The loans made available to the farmer have a very relevant purpose and go beyond the intended rural property: it is a way for the government to help agriculture and rural production to develop in the country and to achieve more satisfactory results for the farmer’s income. and to the consumer’s table. Therefore, it is done by making credit available.
For the producer there are also advantages. After all, he can count on the money available to invest in his production or property, taking an important step that often lacks to move forward and achieve better results.
In addition, this loan can be tailored to the reality it is in – with limits, better rates, expense coverage, terms and benefits that are previously tailored to your needs.
Rural Insurance and PROAGRO
All Lite loan costing operations have rural insurance or agricultural insurance – PROAGRO, which aims to exempt the beneficiary from fulfilling the financial obligations in rural costing credit operations.
This makes a difference in cases where revenue is lost as a result of weather, as directed by Chapter 16 of the Rural Credit Handbook (MCR).
The costing credit, when requested, should be intended to cover normal expenses of the agricultural production cycle , such as the purchase of fertilizers, inputs, pesticides and seeds. It can also be used for livestock activities and to cover animal expenses, such as the purchase of vaccines, medicines and feed, for example.
In addition, there is also the possibility to include in livestock costing operations aimed at maintaining beekeeping, poultry, fish farming, sericulture, aquaculture and artisanal fishing activities.
The farmer also has the possibility to obtain credit before starting his own planting . With early costing it is possible to cover the expenses of agricultural production and to purchase inputs, fertilizers, pesticides and seeds, for example, without taking money from the pocket.
In addition, by purchasing such inputs in advance, the farmer can also gain access to better prices and conditions.
Within this line of credit it is possible to cover various cultures.
What documents are required to grant the loan?
Rural credit can be obtained by farmers registered as individuals or legal entities, provided they are rural producers, in fact.
Incidentally, it is necessary to prove this condition . In addition, proof of income, property registration, Rural Environmental Registry (CAR) and proof of payment of the Rural Territorial Property Tax (ITR) and Rural Property Registration Certificate (CCIR) must be provided. .
It is not mandatory, however, to own the land or property you use. Owners, lessees, lenders, partners, settlers or permit holders may also apply for a loan, provided that the money is directed towards the development of the business.
In addition, if the loan is destined for irrigated crops, the farmer may present the so-called Water Grant, as a way of proving that he carries out the activity on a regular basis and within environmental standards.
For those who qualify for Pronaf, there is one more requirement: it is also necessary to present the so-called Active Pronaf Aptitude Statement (DAP), which can be obtained from unions operating in the rural segment. Such document is required for the producer to be able to apply via Pronaf.
Producers classified in Pronamp, in addition to proving the income, must still have rural property or else a lease.
What must the farmer do to get the loan?
The farmer interested in getting a loan should look for the nearest Lite loan with the basic documentation to be presented . However, depending on the case, the cooperative may still request other documents to supplement the funding request.
This is necessary for her to follow the rules of a standard protocol that must be completed as a way to release credits or not. Based on this protocol, the institution analyzes, for example:
- the suitability of the producer and the possibility that he is not involved in any unlawful activity;
- the project, budget or costing plan to be made in production;
- the financial capacity and technical capacity to accomplish everything that is being planned;
- the calendar for using the money;
- respect for the norms and restrictions of agro-ecological zoning and ecological-economic zoning.
These criteria to be analyzed by the cooperative demonstrate that farmers should be careful about applying for a loan. The more prepared he is, the higher the chances of receiving the desired amount to increase income and productivity of rural production.
How should the loan be repaid after being used?
The loan obtained by the farmer from Lite loan can be repaid later in one installment, with a term of up to 60 days after the harvest for Pronaf and up to 90 days after the harvest for the other producers.
In general, the repayment schedule and timeframe are established taking into account the farmer’s ability to pay and the context of the crop and the produce it produces. In other words, the salaries must coincide with the normal times of earning income through the agricultural activity so that it is not surprised with losses, or with periods that are not earning.
Brazilian family farming is the eighth largest food producer in the world, according to a survey by the federal government. The industry is also responsible for achieving revenues of $ 55.2 billion a year. Not only that: family farming is also the basis of the economy of 90% of Brazilian municipalities that have up to 20,000 inhabitants and accounts for the income of 40% of the country’s economically active population.
This is the size of Brazilian family farming, a giant of the country’s economy . And that is why the Lite loan System believes in the strength that comes from the countryside and chooses to invest directly in it, by doing so through the availability of exclusive credit lines for the local reality.
This category of credit is geared even to meet the needs of farmers in the most varied contexts, whether small, medium, family farmers, medium-sized farmers and micro and small entrepreneurs. Together, they form the basis of Brazilian agriculture and make it so recognized in the world.
Lite loan System rural credit seeks to strengthen the economy that comes from the countryside . And it does this by encouraging the use of rational production methods and by increasing productivity, proper soil protection, stimulating income generation and improving the lives of rural communities.
Within this scenario, the rural producer loan is the most suitable alternative for members to pursue development and minimize the inherent risks of the activity. For this, the Lite loan system is prepared for excellent service and the best conditions for the members.
Did you like the article? Did the text minimize your doubts about rural lending? Then share it with your friends on social networks!