On July 15, 2026, the Federal Government issued Provisional Measure No. 1,376/2026, authorizing the renegotiation of rural debts that may total more than BRL 100 billion in outstanding operations. Eight days later, the National Monetary Council (CMN) regulated the measure through CMN Resolution No. 5,330/2026, setting November 12, 2026, as the final deadline for contracting the new credit lines.
For rural producers, agricultural production cooperatives, credit cooperatives, and financial institutions, the window for renegotiation is short, and eligibility depends on detailed technical evidence — making legal assistance necessary from the stage of gathering documents and technical reports.
Who Can Renegotiate
As a general rule, applicants must demonstrate a minimum 30% decline in expected gross agricultural income in two or more harvests between 2019 and 2025, resulting from adverse weather events or declines in market prices. More severe cases — involving a reduction of at least 40% in income across three or more harvests, with particular attention to regions such as Rio Grande do Sul — receive differentiated treatment (exceptional situations under Article 1, §7).
The following are eligible for renegotiation:
- rural credit operations for production costs, commercialization, and industrialization that had already been extended or renegotiated and with payments up-to-date as of May 31, 2026, or in default between January 1, 2024, and May 31, 2026, provided that they were contracted by December 31, 2025;
- installments of investment credit operations that became due or will become due between January 1, 2024, and December 31, 2026, provided that they were contracted by December 31, 2025; and
- Rural Product Notes (Cédulas de Produto Rural — CPRs) issued by December 31, 2025, in favor of financial institutions, that are in default during the same period.
Credit Limits and Terms
- Pronaf (family farmers): up to BRL 400,000 (or BRL 500,000 in exceptional situations);
- Pronamp (small and medium-sized producers): up to BRL 2 million (or BRL 2.5 million in exceptional situations);
- Other rural producers: up to BRL 4,000,000 (or BRL 8 million in exceptional situations);
- Agricultural production cooperatives: up to BRL 50 million;
- Repayment term: up to 10 years;
- Interest rates: between 5% and 12% per year, depending on the circumstances and the degree of documented loss.
One relevant point for financial institutions is that renegotiated operations are treated as new operations for risk-classification purposes. This reduces the regulatory disincentive for banks and credit cooperatives to renegotiate such debts.
Funding: LCAs, CPRs, and MCR Resources
CMN Resolution No. 5,330/2026 authorizes financial institutions to fund the new credit lines through the issuance of Agribusiness Credit Bills (Letras de Crédito do Agronegócio — LCAs), rural savings deposits, and other unrestricted funding sources. Mandatory resources under MCR 6-2 are limited to the balance of operations that had been settled or amortized as recorded on July 22, 2026. Defaulted CPRs issued by December 31, 2025, may be acquired by financial institutions, with a repayment term of up to eight years.
Exceptions and Restrictions
The following cannot be renegotiated through these credit lines:
- operations referred to the Federal Government’s Active Debt (Dívida Ativa da União);
- operations contracted with resources from the Social Fund (Fundo Social); and
- amounts that had already been settled or amortized by July 14, 2026, including amounts covered by Proagro or rural insurance.
Attention: Temporary Extension Is Conditional
Article 4 of the CMN Resolution authorizes an extension of up to 30 days for installments falling due between July 14 and August 14, 2026, for borrowers who were up-to-date with payments as of July 14, 2026. This extension, however, is conditional upon the submission of a debt restructuring request, provided that the borrower falls within the general criteria established by Provisional Measure No. 1,376/2026 and meets the applicable income-loss thresholds (30% or 40%).
If the request is denied by the financial institution, the producer returns to the original maturity terms, without the expected relief. Formalizing the request and carefully complying with the documentary requirements is therefore essential to preserving the benefit.
A Window Still in Motion
The Provisional Measure is still being considered by the National Congress — the Joint Committee was appointed on July 20, 2026, and the measure will enter an urgency procedure as of August 29, 2026 — and it may be amended before being converted into law. Producers, cooperatives, and financial institutions that have already begun structuring their applications should closely monitor these developments.
Conclusion
MP No. 1,376/2026 and its regulation by the CMN create a concrete — but tight — window for the renegotiation of significant rural debt. Eligibility depends on precise technical evidence of income losses and compliance with the applicable documentary requirements, while the November 12, 2026 deadline leaves little room for organizing the necessary documentation as the deadline approaches.
References and Legal Basis:
BRAZIL. Office of the President of the Republic. Provisional Measure No. 1,376, of July 15, 2026, and its corresponding Statement of Reasons No. 1,668/2026.
BRAZIL. National Monetary Council. CMN Resolution No. 5,330, of July 23, 2026.National Congress.Legislative proceedings for Provisional Measure No. 1,376/2026 (MPV 1376/2026).