The Agribusiness Newsletter brings information and news about the main regulations and legal texts relating to the regulation of agribusiness in Brazil. This initiative seeks to cover the agribusiness industry on its transactional, litigation, tax and regulatory levels, and is an invitation for all of those working in this market to both access important news and comments on vital topics from the sector.

This material is for informative purposes only, and should not be used for decision-making. Specific legal advice can be provided by our legal team.

NEWS

Rural credit: agribusiness bonds grow 28% in 12 months

According to data from the Agribusiness Private Finance Newsletter released by the Ministry of Agriculture, at the end of February 2025, private securities to finance agribusiness totaled BRL 1.256 trillion, an increase of 28% compared to BRL 979.24 billion in the same period in 2024.

This figure includes stocks of Rural Product Notes (“CPR”), Agribusiness Credit Notes (“LCA”), Agribusiness Credit Rights Certificates (“CDCA”) and Agribusiness Receivables Certificates (“CRA”), as well as the net equity of the Investment Funds in Agroindustrial Productive Chains (“FIAGRO”).

CPRs were the fastest-growing security in the period, rising from BRL 314.15 billion to BRL 483.63 billion, representing an increase of 54% in 12 months. Comparing the 2024/2025 crop year with 2023/2024, the accumulated CPR records between July and February 2024/2025 increased by BRL 268.84 billion, 68% more than during the same period of the previous crop year. In addition, the volume of CPRs in circulation increased by 53% in 12 months (from 232,000 bonds to 356,000 bonds). The accumulated growth since 2021 stands out, reaching 1,648%, when the stock was only BRL 27.67 billion.

LCA stock has grown by 392% since February 2021, consolidating its position as the largest bond on the market, totaling BRL 540.14 billion, compared to BRL 477.13 billion in February 2024, an increase of 13%. As required by the National Monetary Council (“CMN”), which determines that half of the funds raised must be directed to the sector, at least BRL 270.07 billion is being reapplied to rural financing.

In February 2024, CRAs totaled BRL 134.31 billion and, compared to the previous year, grew by 14% to BRL 153.37 billion. Meanwhile, CDCAs increased by 10% compared to the previous year’s BRL 31.85 billion, reaching a stock of BRL 35.13 billion, 241% higher than in February 2021. FIAGRO’s net worth reached BRL 43.99 billion in January 2025, representing a 15% increase compared to BRL 38.25 billion in January 2024.

The significant growth in private bonds to finance agribusiness demonstrates investor confidence in the sector and the effectiveness of rural credit policies. Diversifying the financial instruments available, such as CPR, LCA, CRA, CDCA and FIAGRO, has been key to meeting the growing demand for agribusiness financing.

For more information: Rural credit: agribusiness bonds grow 28% in 12 months 

Financial instruments for forest preservation in Brazil: PSA and Green CPR

A seminar recently held by the Center for Infrastructure Studies and Environmental Solutions and the Brazil Climate, Forests and Agriculture Coalition marked a highly significant debate for the future of agribusiness and environmental conservation.

The event was held at the Getúlio Vargas Foundation and focused on the financial instruments that can boost forest preservation in Brazil, especially the Green Rural Product Certificate (“Green CPR”) and the Payment for Environmental Services (“PSA”). The discussion, led by experts in the field, highlighted these mechanisms’ potential, their challenges, and the need to integrate them with other initiatives, such as the carbon market.

One of the key discussion points was the discrepancy between the intrinsic value of the ecosystem services provided by nature and the amount paid for their conservation. Estimates show that the value of these services exceeds the world’s GDP, while investments in conservation represent a tiny portion of this amount. The speakers emphasized the need to reverse the logic that has historically treated forested areas as “unproductive land”, seeking to bring the value paid closer to the value generated by nature.

Efficient markets for environmental services require some crucial characteristics, such as low transaction costs, a clear definition of property rights and consistent information. The environmental asset market currently lacks these characteristics, which calls for a continuous effort to improve it. In this context, the Green CPR has emerged as a promising instrument, inspired by the success of traditional CPRs, which have boosted private agricultural credit since their creation in 1994.

The Green CPR, regulated in 2021, seeks to replicate CPRs’ positive impact on financing nature conservation. Just as traditional CPRs allowed rural producers to obtain credit using their production as collateral, the Green CPR aims to enable PSA projects with greater legal certainty. A major advantage of the Green CPR is its contractual flexibility, allowing for extensive negotiation between those who conserve and those who pay for environmental services, defining deadlines and evaluation methodologies.

In addition to its flexibility, the Green CPR stands out for its legal force, being considered a liquid and guaranteed bond with the possibility of extrajudicial enforcement in the event of non-compliance. This feature provides greater security for payers, encouraging investment in conservation projects. In addition, since last year, all CPRs, including green CPRs, must be registered on platforms authorized by the Central Bank of Brazil, such as B3. This registration ensures that the securities are unique, avoiding double guarantees and providing greater transparency to the environmental services market.

During the seminar, several examples of the application of the Green CPR were presented, from direct contracts to finance conservation to its integration into grain origination transactions. Among the innovative ideas discussed was the possibility of issuing Green CPRs to finance conservation in Permanent Preservation Areas (“APPs”) and legal reserves of the same producers from whom they buy grain, creating a direct link between agricultural production and preservation. Another promising example is the combination of the financial CPR with the Green CPR in FIAGROs, linking rural credit to conservation targets and offering an “environmental cashback” to producers who achieve these targets.

One of the challenges pointed out in the debate concerns the need for clear standards and methodologies to measure and validate the environmental and social results of the Green CPR. Although the CPR regulations do not define these methodologies, as is the case in the commodities market, their definition is crucial for the market’s credibility. Initiatives such as the PSA observatory and the green taxonomy under development in Brazil can play a key role in indicating standards and best practices. Market education and regulation are essential to combat fraud and greenwashing.

In addition, the Green CPR, issued by cooperatives or groups of producers, can be an instrument connecting family farming with large investment funds, ensuring transparency and legal certainty in resource use. Developing innovative financial instruments and demonstrating concrete results are essential steps towards consolidating Brazil as a net exporter of ecosystem services.

For more information: Seminar – Financial Instruments for Conservation: PSA and Green CPR

Association questions STF about lack of regulations on pesticide spraying 

On April 10, 2025, Brazil’s Indigenous Peoples Articulation (“APIB”) filed Direct Action of Unconstitutionality Due to Omission (“ADO”) 92 with the Federal Supreme Court (“STF”), questioning the lack of specific regulations prohibiting the aerial spraying of pesticides in Brazil.

In its initial petition, APIB requests measures against risks to health and the environment, arguing that the lack of stricter restrictions on the aerial application of pesticides has caused damage to indigenous territories, biodiversity and the health of traditional communities. APIB claims that the legislative omission violates several constitutional principles.

In its request to the STF, APIB asks that the unconstitutional omission of the Legislative Branch be declared and that a reasonable deadline be set for the National Congress to publish a law banning or establishing strict controls on the aerial spraying of pesticides in Brazilian territory. Alternatively, it asks that the STF establish provisional standards until the Legislative Branch remedies the omission.

On April 24, 2025, the case was assigned to the rapporteur, Carmen Lúcia.

 REGULATION

TAX REGULATION

Taxpayers successfully overturn CEG levied by the state of Maranhão in court

At least two taxpayers have obtained favorable court injunctions to overturn the Special Grain Contribution (“CEG”) established by Maranhão State Law No. 12,428/24, which is mandatory and is levied at 1.8% on the production, storage or transportation of soybeans, corn, millet and sorghum in the state.

The CEG was established based on a provision added to the Federal Constitution by Constitutional Amendment No. 132/03, which led to the consumption tax reform and authorizes states to create contributions on primary and semi-processed products to finance investments in infrastructure. The collection of the CEG creates financial and logistical obstacles, especially for exporters, and was rejected by the preliminary injunctions mentioned above as contrary to the immunity applicable to exports and tax equality.

AGU establishes conditions for clarifying doubts on tax reform

On April 29, 2025, the Federal Attorney General’s Office (“AGU”) Ordinance No. 174 was published, which establishes the requirements and conditions for admitting the submission of questions on the interpretation of the tax reform to the Chamber for Promoting Legal Security in the Business Environment (“SEJAN”). 

Questions may be submitted by entities that are part of SEJAN. Entities that are not part of SEJAN may also submit questions, which will be accepted at the President’s discretion.

The purpose of the regulation is to clarify questions, which will be answered before the reform enters into force, in order to avoid future litigation.

FINANCIAL REGULATION

CVM’s technical areas provide guidance on FIAGRO’s income distribution system

The Superintendencies of Securitization and Agribusiness (“SSE”) and of Accounting and Auditing Standards (“SNC”) of the Brazilian Securities and Exchange Commission (“CVM”) published CVM/SSE/SNC Joint Circular Letter 1/2025 on April 03, 2025.

The joint circular letter clarifies FIAGRO’s income distribution policy, considering the provisions of Law No. 8,668, of June 25, 1993, CVM Resolution No. 39, of July 13, 2021, and Normative Annex VI of CVM Resolution No. 175, of December 23, 2022.

The joint circular letter highlights that Article 10, sole paragraph, of Law No. 8,668 does not apply to FIAGRO or the new funds aligned with Normative Annex VI. Therefore, administrators and managers using the cash basis for income distribution cannot exceed the year’s profits and retained earnings limits. In this regard, regulations can be adapted simultaneously to the process of adapting FII-FIAGRO to the new commands of Normative Annex VI.

Administrators and managers must adopt the provisions of the joint circular letter as soon as it is published. The CVM has provided the e-mail address sse@cvm.gov.br to clarify any doubts.

For more information: CVM’s technical areas provide guidance on FIAGRO’s income distribution system

Inclusion of FIAGRO as an autonomous category of fund in self-regulation entered into force on March 31

The Brazilian Financial and Capital Markets Association (“ANBIMA”) announced that, as of March 31, 2025, FIAGRO was included as an autonomous category of fund in self-regulation.

The new document versions, which were subject to a public hearing that ended on March 10, have been updated with no changes compared to the drafts presented to the market.

The updated documents include:

• Third Party Funds Management and Administration Code
• Third Party Funds Management and Administration Rules and Procedures
• Qualified Services Rules and Procedures
• Distribution Rules and Procedures
• Basic Duties Rules and Procedures
• Certification Rules and Procedures
• ANBIMA Glossary

These changes align ANBIMA’s self-regulation with the CVM regulation, under CVM Resolution 175, whose Normative Annex IV specifically provides for FIAGRO.

Including FIAGRO as an autonomous category aims to provide greater clarity and standardization in transactions involving these funds, facilitating access to information and compliance with regulations. The measure is a significant step forward for capital markets, especially in the agroindustrial sector.

For more information: Inclusion of FIAGRO as an autonomous category of fund in self-regulation enters into force

ENVIRONMENTAL REGULATION

Environmental licensing

STATE 

Amazonas amends law to grant credit and waive environmental licensing requirements

On April 07, 2025, State Law No. 7,434/2025 was published, amending State Law No. 5,422/2021 and establishing the granting of credit and waiver of environmental licensing requirements for agricultural and aquaculture activities, as having a small polluting and degrading potential, when carried out by family farmers, as a result of the losses caused by the severe drought in the period 2023 and 2024 in the state of Amazonas.

The summary of Law No. 5,422/2021 was modified to reflect the new conditions, specifying that agricultural and aquaculture activities may, exceptionally, only require registration or receipt from the Rural Environmental Registry (“CAR”) to carry out such activities and obtain financing. This amendment was motivated by the damage caused by the COVID-19 pandemic and the exceptional drought that affected the state of Amazonas in 2023 and 2024.

In addition, Article 4 of Law No. 5,422/2021 was amended to establish that the law will enter into force on the date of its publication, effective until March 31, 2027, or until the rural economy is fully restored, due to the severe drought in 2023 and 2024 in the state of Amazonas.

Biofuels / Sustainable Energy 

FEDERAL

Incentive for family farming in biodiesel production approved by CMA 

On April 01, 2025, the Environment Commission (“CMA”) approved Bill No. 5,927/2023, which incentivizes family farming to participate in biodiesel production. The bill, authored by Senator Jader Barbalho (MDB-PA), received a favorable opinion from Senator Beto Faro (PT/PA) and will now be analyzed by the Infrastructure Commission.

The bill seeks to implement measures such as incentives to buy raw materials produced by family farmers, guarantees of technical assistance and the boosting of income and employment within the family farming sector. In addition, the proposal encourages the participation of holders of the Social Biofuel Seal in selling biodiesel, ensuring tax benefits for producers who buy raw materials from family farmers.

Increasing the production and use of biofuels contributes to mitigating greenhouse gas (“GHG”) emissions, especially in the transportation sector. According to the Net Zero Readiness Report 2023, the sector emitted 6% of GHG in Brazil in 2022.

In 2021, the production of biodiesel was 6.7 billion liters, concentrated in the South and Midwest regions. The sale of raw materials by family farming reached BRL 8.8 billion, the highest amount in history, with an increase of 48.5% compared to 2020.

For more information: Incentive for family farming in biodiesel production approved by CMA

Decree modernizes National Biofuels Policy procedures 

On April 16, 2025, Decree No. 12,437/2025 was published, which provides for changes to the National Biofuels Policy (“RenovaBio”), to modernize the administrative sanctioning procedures of the National Agency for Petroleum, Natural Gas and Biofuels (“ANP”).

The regulation amends Decree No. 9,888/2019 by setting individual targets for fuel distributors, requiring proof of partial compliance with the targets, and imposing proportional fines for non-compliance with the targets. In addition, the decree establishes that the ANP must submit a list of distributors who fail to meet their targets to the Brazilian Institute for the Environment and Renewable Natural Resources (“IBAMA”), the AGU, the Federal Public Prosecutor’s Office and other appropriate bodies.

The decree also regulates the ban on the sale and import of fuels for distributors who fail to meet their individual targets, and establishes fines for biofuel producers who fail to pay all or part of the sugarcane producer’s share.

Administrative Infringement Proceedings

SÃO PAULO

São Paulo changes regulations on environmental sanctions 

On April 01, 2025, the São Paulo State Secretariat for the Environment, Infrastructure and Logistics (“SEMIL”) published SEMIL Resolution No. 18, providing for infractions harmful to the environment and their respective administrative sanctions.

The main changes include the possibility of imposing administrative sanctions as precautionary measures to stop environmental damage, prevent new infractions and ensure the effectiveness of administrative proceedings.

The embargo on work or activity does not apply outside permanent preservation areas, legal reserves or specially protected areas, except in cases of deforestation or unauthorized burning of native vegetation.

SEMIL Resolution No. 18 also establishes periods of up to five years for certain sanctions and up to ten years for others, with the possibility of a review at the infractor’s request. It also defines specific fines for causing fires in agroforestry areas and using fire without authorization.

In addition, SEMIL Resolution No. 18 establishes fines for those responsible for rural properties that fail to implement actions to prevent and combat forest fires, doubles the administrative sanctions when the infraction affects indigenous lands and provides for fines for those who fail to comply with a suspension or restrictive sanction.

Initiatives

FEDERAL

Bill allows environmental fund to finance sustainable food and animal feed production

Bill No. 359/25 allows funds from the National Environmental Fund (“FNMA”) to be used for research and development (“R&D”) aimed at the sustainable production of human food and animal feed.

The House of Representatives is currently analyzing the text. According to the bill, the fund will earmark 5% of its income from fines imposed by the Federal Government for R&D. The FNMA is made up of various funds, such as appropriations from the federal budget and fines imposed by IBAMA.

Representative Márcio Honaiser (PDT-MA), author of the bill, mentions that the initiative seeks to strengthen innovation in agribusiness, ensuring greater competitiveness for the sector, without sacrificing sustainability.

The text under analysis by the House of Representatives amends two laws in force: the Environmental Crimes Law and Law No. 7,797/89, which created the FNMA.

The bill will be analyzed conclusively by four commissions: Agriculture, Livestock, Supply and Rural Development; Environment and Sustainable Development; Finance and Taxation; and Constitution and Justice and Citizenship 3 To become law, the bill needs to be approved by the House of Representatives and the Senate.

For more information: Bill allows environmental fund to finance sustainable food and animal feed production

Climate Change

STATE

Amazonas establishes jurisdictional REDD+ system to reduce greenhouse gas emissions

On April 04, 2025, Law No. 7.432/2025 was published, establishing the Jurisdictional System for Reducing Greenhouse Gas Emissions from Deforestation and Forest Degradation, Conserving Forest Carbon Stocks, Sustainable Forest Management and Increasing Forest Carbon Stocks (“REDD+”).

The law establishes Companhia Amazonense de Desenvolvimento e Mobilização de Ativos (“CADA”) ‘s activities in managing and negotiating environmental assets and applying its financial results.

Among the main objectives of the REDD+ Jurisdictional System in the state of Amazonas are achieving carbon neutrality in the state, eradicating illegal deforestation and environmental degradation, encouraging the productive and forest restoration of degraded areas, preserving and expanding the forest carbon stock, fostering climate justice and improving the living conditions of traditional communities.

The system’s guidelines are compatible with constitutional regulations and international agreements, complementary to environmental policies and programs articulated at Brazilian and international levels, and include the management of environmental and social risks. They also recognize the importance of the role of indigenous peoples and traditional communities.

The system includes a number of instruments, such as planning, state REDD+ accounting, measurement, registration and validation, economic and incentive instruments, management of funds, goods and services, socio-environmental safeguards, inventory and certification. The economic and financial mechanisms for boosting and raising funds include transactions in certified jurisdictional environmental assets, capital gains and investment income, funds from bilateral or multilateral transactions, public-private partnerships, and donations from Brazilian and international entities.

CADA will sell the environmental assets on the Brazilian Emissions Reductions Market or other markets in compliance with current legislation. The plans and programs will be implemented according to the legal framework for environmental and social safeguards, including free, prior and informed consultation. CADA must implement a system for monitoring and permanently assessing the results and impacts of plans and programs, ensuring transparency and supporting decision-making processes.

The law also establishes that all plans and programs must comply with all management, control and registration instruments provided for in state legislation. The law’s regulations will define the fees for registering REDD+ projects and the respective credits issued.

GOIÁS

Government of Goiás updates sustainability plan for agriculture 

On April 22, 2025, State Decree No. 10,683/25, was published, amending Decree No. 9,891/2021, which established the Sector Plan for Adaptation to Climate Change and Low Carbon Emissions in Agriculture and Livestock, aimed at the Sustainable Development of the State of Goiás – ABC+GO.

Decree No. 10,683/25 establishes that the Superintendence of Agricultural Engineering and Sustainable Development of the State Secretariat for Agriculture, Livestock and Supply (“SEAPA”), through the Agricultural Sustainability Management, will be the central management unit for ABC+GO.

It also creates the State Management Group for the ABC+ Plan for the state of Goiás, coordinated by SEAPA and composed of representatives from various bodies and entities, including the Mauro Borges Institute for Research and Economic Policy, the Brazilian Institute for Development and Sustainability, the State Secretariat for Science, Technology and Innovation, among others.

SEAPA, by order of its head, will establish the programmatic targets and executive programs for the structuring projects, as well as the actions and activities needed to disseminate and apply the decisions made within the management group’s scope. SEAPA is authorized to carry out tenders and sign agreements, arrangements, and contracts that are essential for implementing the established policies.

Forestry Matters

GOIÁS 

Goiás defines procedures for legal reserve compensation and forestry compensation

On April 04, 2025, the State Secretariat for the Environment and Sustainable Development (“SEMAD”) published SEMAD Normative Instruction (“IN”) No. 02/2025, establishing administrative procedures for Legal Reserve compensation and forestry and damage compensation.

Compensation for the suppression of the Legal Reserve area, necessary for the installation of projects for public utility, social interest, mineral exploration, scientific research or the construction of dams, must comply with the criteria defined in SEMAD IN 02/25. Compensation of the Legal Reserve is allowed in cases where the Legal Reserve is registered on the property’s registration or proposed in the CAR.

When the Legal Reserve is used for mining, dam construction or public utility projects, the following compensation methods will be accepted:

• regeneration of the area used, when the use is temporary and short term; compensation of the area used by relocating or relocating the Legal Reserve within the property;
• compensation of the Legal Reserve outside the property; and
• donation of an area to a state conservation unit, pending land-title regularization. The planned compensation must be carried out before the installation license and/or authorization to convert the land’s use are issued.

When the use of the Legal Reserve is intended for the implementation of projects of public utility, or projects of social interest, affecting third-party areas, the developer may opt for one of the following modalities:

• regeneration of the area used, when the use is temporary and short term;
• compensation of the area used through the establishment of a perpetual environmental easement;
• donation of the area to a state conservation unit of full protection, pending land-title regularization;
• compensatory planting; and
• participation in environmental recovery projects.

Planned compensation will be approved as part of the process in the environmental licensing system.

When the Legal Reserve is used for scientific research purposes, the method to be adopted must be regeneration of the area. If regeneration of the area used is not possible or if the period of use extends beyond what was anticipated.

Forestry compensation and compensation for environmental damage will be carried out using one of the following methods:

• perpetual environmental easement over an area of conserved native vegetation;
• donation of property within a state conservation unit for land regularization;
• compensatory planting with native species linked to the perpetual environmental easement;
• recovery of a degraded area within a full protection conservation unit;
• participation in projects to revitalize watersheds or environmental recovery; and
• deposit in a specific account linked to the fine conversion fund.

Compensation for the suppression of species classified as “Immune from Cutting”, “Critically Endangered”, ‘Endangered’, “Vulnerable”, protected or endemic to the Cerrado or endemic to the Atlantic Forest, will be carried out using one of the following methods:

• compensatory planting linked to a perpetual environmental easement;
• perpetual environmental easement over an area of conserved native vegetation; and
• donation of an area within a state conservation unit for land regularization.

ESPÍRITO SANTO 

Espírito Santo updates regulations of Reflorestar Program

On April 0il 01, 2025, the State Secretariat for the Environment and Water Resources (“SEAMA”) published SEAMA Ordinance No. 9-R/2025, updating the rules of Espírito Santo’s State PSA Program, executed through the Reforestation Program (“Reflorestar Program”).

The ordinance aims to boost recognition of the methods supported by the Reflorestar Program as generating ecosystem services, eligible for rewards and/or financial support. The methods are divided into land use and physical interventions for soil and water conservation.

The conservation land use methods include the Standing Forest (“Floresta em Pé”), which involves primary or secondary forest cover at an early stage of regeneration; restoration through the management of natural regeneration, which involves isolating and eliminating degradation factors in order to naturally reconstitute the vegetation; and restoration through the planting of native species, in which native Atlantic Forest species are planted in degraded areas.

The productive land use methods include the Agroforestry System, which integrates perennial woody species and agricultural crops; the Silvopasture System, which integrates agricultural, livestock and forestry activities; and the Managed Forest, which involves sustainable forest management and the exploitation of non-timber resources.

Rural properties can receive bonuses of up to 50% on the amount of the Long-Term PSA, depending on specific situations such as forest cover, creation of Private Natural Heritage Reserves, location in a Conservation Unit, good land use practices, among others.

SEAMA will publish lists of recommended species and invasive exotic species on its website. Omissions will be resolved by the Reflorestar Program Advisory Board (“APREF”).

Espírito Santo regulates technical activities of the Reflorestar Program

On April 0il 01, 2025, SEAMA Ordinance No. 10-R was published, regulating and governing the provisions and rules for carrying out the technical activities required to operationalize the State’s Payment for Environmental Services Program, implemented through the Reflorestar Program.

The ordinance outlines the technical actions needed to maintain and recover ecosystem services. The activities described in SEAMA Ordinance No. 10-R may only be carried out by professionals duly qualified and registered with their respective professional councils, linked to technical entities accredited by the Reflorestar Program’s operating agent. Technical consultants must take part in training courses and the Reflorestar Program’s mobilization and prospecting activities.

The activities to be carried out by technical consultants within the scope of the Reflorestar Program are grouped into three main actions: development of technical projects, implementation of technical projects and technical monitoring of activities. Technical consultants must register all activities and documents produced on the Reflorestar Portal, using the provided templates for reports, statements, and questionnaires.

To develop technical projects, the technical consultant must carry out technical visits to the rural property, collect the necessary information and documentation, inform the beneficiary about the general rules of the Reforestation Program, provide technical details on the intervention modalities, help identify priority areas for restoration and physical interventions, provide estimates of the amounts receivable, inform about the PSA contract and its obligations, clarify the conditions and rules for payment of the PSA installments, inform about possible penalties in the event of non-compliance with contractual obligations, provide guidance on the correct use of pesticides and proper disposal of packaging, and record the technical visit on the Reflorestar Portal.

When implementing technical projects, the technical consultant must deliver and present the PSA contract, obtain signatures from the beneficiary, formally deliver the contract and technical projects, reinforce information passed on during the technical visit, collect signatures on declarations, apply questionnaires, schedule technical visits for guidance and assistance in the preparation phase of the interventions, and record the technical visit on the Reflorestar Portal.

Hired consultants must meet and ensure the highest standard of ethics during contract execution, and practices such as corruption, fraud, collusion, coercion, and obstruction are considered inappropriate and punishable in the civil and criminal spheres. In the event of funding from a multilateral financial organization, it may impose sanctions on companies or individuals involved in inappropriate practices.

SEAMA Ordinance No. 035-R, of July 07, 2023, has been repealed. The new remunerative actions provided for in this ordinance may be applied to current PSA contracts, provided that the contract is at a stage compatible with its implementation.

ACRE

Acre amends regulations on economic subsidies for forestry producers 

On April 11, 2025, Decree No. 11,676/2025 was published, amending Decree No. 11,564/2024 and regulating Law No. 1,277/1999, which establishes the economic subsidy for state producers when exploiting forestry products.

Decree No. 11,564 now reads as follows: “Art. 3 Payments will be made to beneficiaries according to the schedule for receiving invoices at the State Department of Agriculture.”

Agricultural Pesticides

RONDÔNIA 

Rondônia extends deadline to renew registration of pesticide dealers

On March 31, 2025, the Agrosilvopastoral Health Defense Agency of the State of Rondônia (“Idaron”) published IDARON Ordinance No. 232/2025, which provides for a deadline extension to renew the registration of pesticide dealers, distribution centers, and storage depots in the state of Rondônia and establishes other measures.

The ordinance extends, on an exceptional basis, the deadline to renew the registration of individuals and legal entities that carry out the activities of pesticide dealer, distribution center and storage warehouse until June 31, 2025. After this deadline, the registrations of companies that do not proceed with regularization will be automatically canceled, subject to the sanctions provided for in current legislation.

Establishments covered by the ordinance must submit all the documentation required by current legislation in order to renew their registration. In addition, regional supervisors must formally appoint a work team, listing the names and registrations of the designated officials, to notify all agricultural establishments of the ordinance’s provisions.

ESPÍRITO SANTO

Espírito Santo amends regulations on pesticide residue analysis

On April 17, 2025, State Decree No. 6,023-R was published, mending Chapter X of Decree No. 4,442-R, of May 29, 2019.

This decree regulates Law No. 5,760, of December 02, 1998, which provides for the use, production, consumption, trade, storage and internal transport of pesticides, their components and the like in the state of Espírito Santo.

The State Program for Analysis of Pesticide Residue was established as an official instrument of Espírito Santo to monitor the presence of residues of these substances in products of plant origin produced and consumed in the state.

Plant samples must be collected exclusively by inspectors from the Espírito Santo Institute for Agricultural and Forestry Defense (“IDAF”) and in the presence of the farmer or person responsible for the production. The plants must be collected randomly, in different areas, without preference for a particular characteristic, such as size, color or type. The analyses may be carried out by laboratories of state or federal public institutions or by private laboratories accredited to the ABNT NBR ISO/IEC 17025 standard. If the specified laboratories are unavailable, the samples may be submitted to other laboratories, provided they have the technical capacity to carry out the analyses.

In the case of perishable plant products, the sample will be a single one, formed to ensure the greatest possible representativeness of the supplying production unit. Exclusively for other products, which are considered non-perishable, sampling may be divided in three. Two sample parts will remain in IDAF’s possession so they can be submitted to the laboratory for analysis, and the third part will be offered to the farmer or person responsible for the production, who can use it as a counter-test sample, at their discretion. The farmer or person responsible for the production must freeze the sample for preservation, or it will lose its viability.

In the event of an unsatisfactory result, the appropriate administrative measures must be adopted. IDAF is responsible for issuing supplementary regulations necessary to ensure faithful compliance with this program.

Rural Credit

FEDERAL

Central Bank authorizes extension of rural credit payments

On April 04, 2025, the CMN published CMN Resolution No. 5.204/2025 to extend the payment period for rural credit transactions contracted with funds from the Northeast Constitutional Financing Fund, from January 02, 2022 to July 31, 2022, by family farmers, mini and small rural producers.

The resolution authorizes the renegotiation of rural credit transactions for agricultural and livestock funding maturing from January 02, 2025, to the date of publication of the resolution for projects affected by drought in municipalities in the Northeast Development Superintendence’s area of operation, with a decree of emergency or state of public calamity recognized by the Federal Executive Branch.

Specific renegotiation conditions include:

• Reimbursement: up to 100% of the costing credit due can be renegotiated for payment in up to 48 months, including up to 12 months grace period.
• Financial charges: the outstanding balance must be updated by the date of formalization at the agreed standard financial charges, excluding interest on arrears and fines.
• Formalization of the renegotiation: by May 31, 2025. Exemption from compliance with the requirements in MCR 2-6-4[1] and MCR 10-1-25[2].

The provisions do not apply to transactions by borrowers who have deviated from the purpose of the credit, costing transactions under the Agricultural Activity Guarantee Program (“PROAGRO”) or with rural production insurance coverage, and projects carried out without complying with the conditions of the Agricultural Zoning for Climate Risk ordinances.

Payment for Environmental Services

GOIÁS

Goiás establishes state environmental services policy

On March 31, 2025, Law No. 20,123/2025, was published, establishing the State Environmental Services Policy.

The policy aims to encourage the development and execution of programs, projects and initiatives for implementing environmental services, to encourage the transaction of environmental services between private individuals, and to ensure the preservation of biodiversity, the improvement of environmental quality and sustainable development in the use of natural resources.

The State Environmental Services Policy applies to individuals and legal entities, both public and private, that provide, pay for, and mediate environmental services.

For the purposes of the new law, environmental services are considered significant benefits for society generated by the environment, made possible by human actions or activities that result in the preservation, conservation, restoration, recovery or sustainable use of natural resources and urban spaces.

The guidelines include encouraging the preservation and sustainable use of natural resources, encouraging socio-economic sustainability, recognizing the role of traditional peoples and communities and family farmers, valuing actions in the urban environment that generate positive environmental externalities, encouraging the mitigation of greenhouse gas emissions and contributing to improving the quality of life in the state of Goiás.

Policy instruments include the State Program for Payment for Environmental Services, programs, projects and contracts for payment for environmental services, the platform for information on environmental services, the state registry for payment for environmental services, methodologies for the economic valuation of environmental services and technical assistance, training and environmental education. Payment methods for environmental services include direct monetary or non-monetary payment, technical assistance to the provider and the donation of material and inputs for environmental recovery.

The Executive Branch will regulate the law, establishing how the public policy will be monitored and evaluated. The Environmental Services Information Platform and the State Register of Environmental Services will be set up to provide information and encourage the transaction of environmental services.

[1]MCR code 2-6-4 refers to a specific section of the Rural Credit Manual that addresses rural debt extension. This section does not make debt extension conditional on submitting the request before the operation expires.

[2]MCR code 10-1-25 refers to another section of the Rural Credit Manual, but the research results did not provide specific details about this section. However, the MCR’s structure follows a coding pattern that facilitates reference to chapters, sections, headings, subparagraphs and items.

MAPA – MINISTRY OF AGRICULTURE AND LIVESTOCK REGULATION: 

MAPA establishes requirements for signing a settlement agreement in administrative proceedings 

On April 16, 2025, the Ministry of Agriculture and Livestock (“MAPA”) published MAPA/SDA Ordinance No. 1,265/25,  which establishes the requirements for signing a settlement agreement in administrative proceedings arising from infraction notices resulting in the imposition of administrative sanctions that interrupt economic activities.

MAPA/SDA Ordinance No. 1,265/25 entered into force on the date of its publication. Its main topics include:

• Eligibility: only establishments registered with the Department of Inspection of Animal Origin Products (“DIPOA”) fined for infringing Decree No. 9,013/2017 can apply for the settlement agreement.

• Suspensive effect: an application submitted on time will suspend the application of sanctions in administrative proceedings. This means that if an application is submitted within the stipulated period, the sanction will not be applied immediately. Instead, the administrative proceeding will resume after the ordinance regulating this suspension becomes effective.

• Settlement agreement and its obligations: in addition to the main obligations provided for in MAPA/SDA Ordinance No. 1,265/25, the appropriate authority may establish other ancillary obligations that it deems pertinent to resolving the non-conformities identified in each specific case. The interested party will be required to pay an arbitration fine, which will replace the penalty originally imposed on the establishment and is not to be confused with any fine imposed on the establishment when the infraction notice is judged.

• Termination: the settlement agreement can be terminated due to non-compliance or at the request of the interested party. The termination will be published in the Federal Official Gazette and implies the return of the original penalty. There is no refund of the commitment paid or of the donated goods.

MAPA establishes measures to monitor chemical residues and contaminants 

On April 17, 2025, MAPA published MAPA/SDA Ordinance No. 1,266/25, establishing the measures for monitoring and controlling residues and contaminants in food production chains of animal origin applied within the scope of the National Program for the Control of Residues and Contaminants in Products of Animal Origin (“PNCRC”).

MAPA/SDA Ordinance No. 1,266/25 will enter into force on October 17, 2025. Its main topics include:

• Implementation of Official Verification Plans: the implementation of Official Verification Plans is the sole responsibility of the official inspection body within the scope of MAPA. These plans aim to monitor the presence of chemical residues in products of animal origin, such as meat, milk, eggs, and honey. It is worth noting that this activity does not replace the self-control programs implemented by establishments under the Federal Inspection System, but complements them.

• Monitoring Subprogram: the Monitoring Subprogram involves collecting samples of animal products at random and based on technical criteria defined by the Residues and Contaminants Coordination. Its main purpose is to check for residues of veterinary medicines, environmental contaminants and other chemical compounds.

• Investigation Subprogram: the Investigation Subprogram is activated whenever non-compliance is detected in analyzed samples, either due to an excess of permitted residues or the presence of prohibited substances. In such cases, the health authority must adopt immediate measures, such as inspecting the property where the product originated and setting up an exceptional control regime. During this regime, the products produced there can only be released for consumption after new laboratory tests prove they are in order.

• Owners’ responsibility: those responsible for rural properties must ensure that the official agricultural inspection service has unrestricted access to the areas and facilities where animals are reared, feed is produced, warehouses and other places of interest. In addition, the owners must enable investigation and sample collection activities, providing animal handling and restraint when necessary, so that inspectors can collect samples safely and effectively. Owners must also provide all the information requested by the official agricultural inspection service. Those responsible must provide detailed data on the animals, including information on their health, diet and management, as well as details on animal feed production and other important aspects. Any additional information the inspectors consider essential for the investigation must also be provided.

REAL ESTATE REGULATION:

Agriculture Commission rejects proposal to seize rural properties for agrarian reform

On April 23, 2025, the Agriculture, Livestock and Rural Development Commission (“CAPADR”) of the House of Representatives rejected Bill No. 4522/21, which proposed the seizure of rural properties under tax foreclosures in case there are no funds available. The decision was based on the idea that Bill No. 4,522/21 would be inappropriate and harmful to the rural productive sector.

Bill No. 4,522/21 allowed the Public Treasury to award the rural property if there was no legal challenge to the foreclosure. The award is characterized by the act that transfers ownership of the property from a debtor to their creditor.

Thus, the Federal Government could take possession of the property, as long as the National Institute for Colonization and Agrarian Reform (“INCRA”) was consulted and expressed interest within 30 days.

CAPADR argued that the bill distorted the purpose of tax foreclosure and compromised the balanced allocation of public funds. It also pointed out that Brazil already has a larger area earmarked for land reform than the total agricultural production area.

The decision also held that the bill jeopardizes legal certainty by allowing the government to award private property without clear guarantees to the owners, creating instability in the countryside and discouraging investment in the agricultural sector.

The bill will still be analyzed by the Finance and Taxation (CFT) and Constitution and Justice and Citizenship Commissions. If any of these commissions approve it, it will move forward to the plenary.

In plenary, the quorum (minimum attendance) to vote on an ordinary bill is an absolute majority, i.e., 257 representatives. A simple majority of votes is required to pass the bill in a single round.

Decision confirms limitations on small rural property’s unseizability

The 1st Chamber of Private Law of the Mato Grosso Court of Justice recently ruled that for a small rural property to be unseizable, it must not only be rural, but also directly exploited by the family for subsistence.

In the case in question, the decision upheld the seizure of a rural property used for commercial purposes, on the grounds that the legal protection does not apply when the property is used for commercial activities and when the debtor has other sources of income and real estate.

The decision is consistent with the case law that has been consolidated on the subject, arguing that the legal protection conferred to small rural producers must be analyzed from a social perspective to ensure the survival and dignity of the farmer and his family.

In this regard, the unseizability of small rural properties depends on the cumulative fulfillment of two requirements:

1. that the property is less than four fiscal modules in size, as provided for in Law No. 8,629/93; and
2. that the property must be used directly by the family and intended for the subsistence of those involved.

The case analyzed did not fit the concept of a small rural producer, as it involved the owner of several other rural areas and a trader in landscaping and the sale of grass.

This is a major decision illustrating that there are limitations to the unseizability of small rural properties.