Provisional Measure No. 1,376/2026 authorizes new lines of credit for the restructuring of rural debts and provides for a guarantee fund.

The measure is intended to help producers and cooperatives affected by crop losses, adverse weather events, or a drop in market prices, but access will depend on regulation, proper classification, and analysis by financial institutions.

Published in an extra edition of the Official Gazette of the Union on July 15, 2026, Provisional Measure No. 1,376/2026 authorizes the creation of credit lines intended for the settlement or amortization of rural credit operations and certain Rural Product Certificates — CPRs. The rule also authorizes the Union's participation in a guarantee fund aimed at covering operations contracted by rural producers affected by adverse weather events.

The measure aims to offer alternatives for the financial reorganization of producers and cooperatives that have accumulated significant losses in recent years. However, its publication does not represent automatic debt renegotiation or a guarantee of credit approval. The operationalization of the lines of credit will depend on regulations from the National Monetary Council (CMN), analysis of the submitted documentation, and the internal credit policies of each financial institution.

Who will be able to access the new lines?

Farmers and agricultural production cooperatives, acting as farmers, who have registered losses in two or more harvests between 2019 and 2025 may be eligible.

To qualify, it will be necessary to prove a minimum reduction of 30% in the expected gross agricultural income for the crop or activity being financed. This proof must be provided through a report issued by a legally qualified professional.

Losses may result from both extreme weather events, such as droughts, floods, frosts, hail, strong winds, and heavy rains, and from reductions in the market prices of financed agricultural products.

The expert report will therefore play a central role in the process. It will not be enough to merely demonstrate the existence of financial difficulties: it will be necessary to establish, in a consistent manner, the relationship between the losses suffered, the reduction in income, and the transactions that are intended to be liquidated or amortized.

Which operations may be covered?

Subject to the criteria set forth in the Provisional Measure, the lines of credit may encompass different types of rural credit.

These include financing, marketing, and manufacturing operations that have been renegotiated or extended until May 31, 2026, and that are in good standing on the date the new line of credit is contracted.

Operations of these types contracted up to December 31, 2025, that entered into default on or after January 1, 2024, and remained in default on May 31, 2026, may also be covered.

The provisional measure also covers certain installments of investment financing, due or to become due between January 1, 2024, and December 31, 2026, provided that the other legal requirements are met.

In the case of CPRs (Rural Product Certificates), financial institutions are authorized to acquire CPRs with financial settlement issued by rural producers to settle or amortize another CPR previously issued in favor of a financial institution. For this to occur, among other conditions, the original CPR must have been issued by December 31, 2025, be duly registered, and have remained in default as of May 31, 2026.

Transactions already submitted for registration as outstanding debt with the Federal Government will not be eligible for the program.

Limits, charges and deadlines

Under the general regime, the Provisional Measure establishes the following credit limits:

• Up to R$400,000 for family farmers enrolled in Pronaf;

• Up to R$2 million for producers eligible for Pronamp;

• Up to R$4 million for other rural producers.

The projected financial charges are 6% per year for Pronaf, 9% per year for Pronamp, and 12% per year for other producers.

The repayment period can reach eight years, with the first principal amortization installment due two years after the loan is signed. However, interest will be paid during the grace period.

For amounts exceeding the limits of the main lines of credit, the Provisional Measure authorizes the creation of supplementary lines of credit with unrestricted or earmarked funds from financial institutions. In these cases, interest rates may be fixed or variable and will be negotiated between the parties.

Special conditions for more severe losses.

The regulation establishes an exceptional regime for producers and cooperatives that have suffered losses in three or more harvests between 2019 and 2025, caused by extreme weather events, with a minimum reduction of 40% in expected gross agricultural income.

Under this system, the limits could reach:

• R$ 500,000 for producers enrolled in Pronaf;

• R$ 2.5 million for producers enrolled in Pronamp;

• R$ 8 million for the remaining producers.

The projected interest rates are reduced to 5%, 8%, and 11% per year, respectively. The repayment term can reach ten years, with the first principal amortization installment due after two years.

This exceptional framework will require an even more robust technical demonstration, especially regarding the number of crops affected, the climatic origin of the losses, and the percentage reduction in income.

Deadline for hiring and regulation

The lines must be contracted within 120 days of the publication of the Provisional Measure.

Although the regulation came into effect immediately, several operational aspects will still depend on the regulation of the National Monetary Council, which may define additional conditions, limits, and rules for the use of the resources of the National Rural Credit System.

The provisional measure also authorizes financial institutions, in certain situations, to extend by up to 30 days installments of transactions that were current on July 14, 2026, and would expire within 30 days of publication. The extension will depend on the transaction's classification, the borrower's eligibility, and the request to contract one of the new credit lines.

Given the relatively short timeframe, it is recommended that producers and cooperatives begin immediately to gather information on operations, contracts, income statements, and other elements necessary for preparing the reports.

Qualification does not mean automatic approval.

One of the main points to note is that the credit risk will continue to be assumed by financial institutions.

The contracting process will adhere to each bank's internal policies, and risk assessment will be conducted as a new transaction. Guarantees may also be reviewed, either reduced if there is an excess, or increased if deemed insufficient.

Therefore, meeting the criteria of the Provisional Measure does not, in itself, guarantee the approval of the financing. The quality of the application documentation, the ability to pay, the available guarantees, and the applicant's history will continue to be evaluated.

Guarantee fund and liability for falsified documents.

The provisional measure authorizes the Federal Government to participate as a shareholder in a guarantee fund intended to cover rural credit operations contracted by producers affected by adverse weather events.

The fund should also include the participation of producers and financial institutions, and its operating conditions, guarantee limits, and eligibility criteria will be defined in specific regulations.

The regulation also establishes significant penalties for the presentation or use of false or fraudulent reports, statements, or documents. Among the consequences are the immediate loss of benefits, the restitution of amounts received, and the prohibition from contracting subsidized rural credit operations or receiving public incentives for up to five years.

A qualified professional who issues or validates a document that is inconsistent with reality may also be held administratively, civilly, and professionally liable.

Advance preparation will be crucial.

Provisional Measure No. 1,376/2026 represents a significant opportunity for reorganizing rural liabilities, especially for producers and cooperatives impacted by successive crop losses.

However, the effectiveness of the measure will depend on supplementary regulations, the correct identification of eligible transactions, and the submission of technically sound documentation.

The short timeframe for contracting reinforces the importance of an advance analysis of contracts, transaction dates, default or extension conditions, income impacts, and existing guarantees.

MSC Advogados is monitoring the regulations and developments of Provisional Measure No. 1,376/2026 and is available to guide rural producers and cooperatives in analyzing eligibility, organizing documentation, and structuring their applications to financial institutions.

This content is for informational purposes only and does not replace an individualized analysis of each transaction.