The Ministry of Agriculture (Mapa) and the Ministry of Economy (ME) signed on Monday (21), a Cooperation Agreement with the Inter-American Development Bank (IDB) for the establishment of a credit line worth US$ 1.2 billion. The resources will be allocated primarily to sustainable development projects of agricultural production chains.

The new credit line may be used by federal government and state government entities, as well as financial institutions that act as intermediaries with the private sector, following the standards established by the Commission for External Financing (Cofiex). The Secretariat of International Economic Affairs (Sain) of the Ministry of The Ministry of Foreign Affairs will be responsible for monitoring the Program between the organs of the federal governments, states, the Federal District and the IDB.

Credit lines will be available for ten years. The projects should be aligned with policies to support the agricultural sector and rural development, defined as priorities by the Map's Strategic Plan 2020-2031. The areas of agricultural defense and innovation – including research, technical assistance and rural extension – will be addressed, land and environmental regularization, as well as environmental sustainability and resilience to climate change.

The Agricultural Development Support Program in the Northeast (AgroNordeste) will be the first beneficiary, with US$ 230 million, for the development of economic opportunities in agricultural value chains, in land and environmental regularization. The resources will also be used in AgroNordeste projects to expand the area free of fruit flies, in Rio Grande do Norte and Ceará, and in the consolidation of the Phytosanitary Protection Area of fruit flies, in the Vale do São Francisco.

In signing the agreement, Minister Tereza Cristina stressed the importance of technical assistance for small producers. "This can be a revolution for family farming, because that's all they need. I was very impressed with the success cases of the small producers served by the AgroNordeste program. The transformation is impactful, especially in the Northeast", said the minister.

"The adoption of financing under the CCLIP lines allows the replication of sectoral policies designed by the federal government to subnational entities through specific financing operations. Within the IDB, the adoption of this credit line allows a simplified procedure for the internal analysis process of the projects, providing agility in the approvals of the respective financings", explained the Special Secretary of Foreign Trade and International Affairs of the ME,Roberto Fendt Júnior, who participated in the signing of the Cooperation Agreement at the Map's head office in Brasilia.

IDB Representative in Brazil Morgan Doyle said he was excited about the partnership. "We understand that with this line we will offer a comprehensive package for farmers. It's an opportunity to work together on this follow-up, especially with small producers, and make a difference," he said.