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

FIAGRO industry grows 315% in two years

The Brazilian Securities and Exchange Commission (“CVM”) announced that the Investment Funds in Agroindustrial Productive Chains (“FIAGRO”) industry grew by 315% between December 2022 and December 2024, according to the 9th edition of the CVM Agribusiness Newsletter.

FIAGRO’s net worth increased from BRL 10.5 billion to BRL 43.7 billion in this period, standing out as one of the fastest-growing segments in capital markets.

The Agribusiness Receivables Certificates (“CRA”) market has also been booming, as its net worth increased by 60% in the last two years, reaching BRL 153.5 billion in December 2024. This performance reinforces the importance of agribusiness for Brazil’s economic development and its evolution in capital markets.

The CVM published CVM Resolution No. 214 in September 2024, establishing the final FIAGRO regulation. This new regulation aims to facilitate the access of the agricultural sector to public savings funds, ensuring high standards of conduct, transparency and governance. The regulation also seeks to protect investors and strengthen the presence of agribusiness in capital markets.

David Menegon, CVM’s Securitization and Agribusiness manager, pointed out that the figures published in the newsletter demonstrate the strength of agribusiness for both investors and small rural producers. He pointed out that the significant growth in FIAGRO and CRAs indicates the sector’s potential for diversifying investments and financing Brazilian agribusiness.

The capital market share corresponding to agribusiness has increased by 16% over the last two years. The financial volume of agribusiness increased by 36% in the period, soaring from BRL 397 billion to BRL 540 billion, while the total financial volume of capital markets varied by 17%, from BRL 13.1 trillion to BRL 15.3 trillion.

The CVM remains committed to boosting the presence of agribusiness in capital markets, fostering a more robust and transparent business environment. The new FIAGRO regulation is seen as an important step towards guaranteeing investor protection and fostering the sustainable growth of Brazil’s agroindustrial sector.

For more information: Vetoed rules allowed non-taxpaying FII and FIAGRO; portfolios are now subject to IBS and CBS and FIAGRO industry grows 315% in two years.

Agribusiness opportunities and the carbon market in Brazil

The approval of Law No. 15,042 of December 11, 2024, which creates a regulated carbon market in Brazil, marks a strategic milestone for the country’s environmental and economic agenda.

According to McKinsey Global Management Consulting, the carbon credit sector could generate up to USD 50 billion by 2030, and Brazil is in a leading position. The study highlights that Brazil holds 15% of the global natural carbon capture potential and can supply up to 48.7% of the world’s demand.

Carbon credits are instruments that measure the reduction of greenhouse gas emissions into the atmosphere. Companies that emit fewer gases than permitted by law can sell their “savings” to other companies that must meet environmental targets. This encourages the market to adopt greener solutions, such as planting trees, using solar or wind energy and developing less polluting technologies.

The regulation of the carbon market is especially important for combating deforestation. By placing an economic value on the standing forest, carbon credits create a real incentive for rural landowners and companies to choose to preserve areas of native vegetation instead of modifying them for other uses, such as cattle breeding and soybean plantations. This approach will be essential for protecting biodiversity and the global climate balance.

The carbon market can also be a catalyst for technological innovation. Startups will find this a fertile environment for developing solutions that reconcile environmental preservation with job and income generation. The interplay between technology and sustainability will be key to transforming environmental challenges into economic opportunities.

Ensuring transparency and integrity is essential for a successful carbon market. Strict supervision and continuous monitoring of emission reductions are essential to make this a reliable and attractive model for investors, companies and governments. Regulation is a decisive first step, but all of us – governments, companies and society – must work together to turn this vision into reality.

Brazil has a unique chance to lead the global carbon credit market, exploiting its natural wealth and innovative potential. In the future, this initiative is expected to help mitigate the effects of climate change and enable Brazil to achieve a model of sustainable development in which preservation is as important as production.

For more information: Agribusiness opportunities and the carbon market in Brazil.

AGRO IN THE MEDIA

José Diaz: Rural land in Brazil has been one of the best investments in recent years

REGULATION

TAX REGULATION

CARF validates calculation of PIS/Cofins credits on reforestation expenses

On February 12, 2025, the 1st Panel of the 3rd Chamber of the 3rd Section of the Administrative Council of Tax Appeals (“CARF”) allowed the recording of PIS/Cofins credits under the non-cumulative system on expenses incurred with forest formation and reforestation (including plant seedlings).

In this case, CARF held that these expenses (among other items) represent an input into the taxpayer’s activities that can be credited and dismissed the restrictive interpretation of the tax authorities that prohibited the calculation of credits in this case, given their incorporation into the company’s biological assets.

(Case No. 10580.721621/2017-57, 1st Panel of the 3rd Chamber of the 3rd Section of CARF, judgment not yet published).

CARF allows accelerated depreciation of sugar cane crops

On January 30, 2025, the 2nd Panel of the 1st Chamber of the 1st Section of CARF allowed the incentivized accelerated depreciation of sugarcane crops to be deducted from the Corporate Income Tax (“IRPJ”) and the Social Contribution on Net Income (“CSLL”) calculation bases.

According to the prevailing opinion, Article 6 of Provisional Measure No. 2159-70/01 grants the benefit unrestrictedly, regardless of the accounting criterion (i.e, covering permanent assets subject to both depletion and depreciation). The decision reinforces the position that has been adopted at the administrative level in favor of taxpayers (see, for example, the decisions of the 3rd Panel of the Superior Chamber of Tax Appeals in Cases No. 13116.000340/2008-41 and No. 13116.000341/2008-95).

(Case No. 13116.720560/2009-75, 2nd Panel of the 1st Chamber of the 1st Section of CARF, judgment not yet published).

CARF upholds zero PIS/Cofins rate on raw materials for fertilizers

On January 06, 2025, the 1st Panel of the 4th Chamber of the 3rd Section of CARF published a decision maintaining the zero rate of the Social Integration Program Tax and the Social Security Financing Tax (“PIS/COFINS”) on revenue from the sale of raw materials used in the manufacture of fertilizers.

According to the tax authorities, the exemption provided for in Decree No. 5,630/05 (art. 1, item I paragraph 2) would depend on proof of the actual use of raw materials in manufacturing fertilizers. In this case, although CARF has relaxed the strictness adopted by the Federal Revenue Service in this control, the taxpayer has submitted statements from purchasers stating that the raw materials had been acquired for this specific purpose, allowing the argument to stand.

(Case No. 10875.910251/2011-20, 1st Panel of the 4th Chamber of the 3rd Section of CARF, ruling No. 3401-013.582, published on January 06, 2025).

CARF rules out IRPJ/CSLL on presumed ICMS credits

On January 06, 2025, the 2nd Panel of the 4th Chamber of the 1st Section of CARF decided that IRPJ/CSLL should not be levied on presumed ICMS credits (subsidy debate).

The Panel followed the position of the Superior Court of Justice (“STJ”) established in Subject No. 1,182 and in Special Appeal No. 1,517,492/PR (relating to presumed credits), stating that the assessment of compliance with the requirements of Article 30 of Law No. 12,973/12 is restricted to the constitution of an incentive reserve (the distinction between costing and investment subsidies is unenforceable) and applies only to other types of the Brazilian Value-Added Tax (“ICMS”) benefits, such as a reduction in the calculation base, rate reduction, exemption and deferral. It should be noted that the tax treatment of subsidies was substantially altered by Law No. 14,789/23, although discussions prior to this legislative change are still important, considering the significant backlog of pending cases on the matter.

(Case (paradigm) No. 10920.724158/2017-05, 2nd Panel of the 4th Chamber of the 1st Section of CARF, ruling No. 1402-006.949, published on January 13, 2025).

CARF allows PIS/Cofins credits on advertising expenses

On January 06, 2025, the 1st Panel of the 2nd Chamber of the 3rd Section of CARF published a decision allowing the calculation of PIS/Cofins credits under the non-cumulative system on expenses incurred with Internet advertising.

Crediting this type of expense is part of the input concept (STJ – Subject 779) and is usually discussed between taxpayers and tax authorities. The case analyzed involved a taxpayer engaged in logistics and the sale of goods online, whose activities (which were exclusively digital) justified the essential nature and importance of this type of expense for attracting customers and generating operating revenue. The closer the link between the taxpayer’s activities and the expenses incurred in contracting advertising, the more it fits the input concept defined by the STJ.

(Case No. 19311.720262/2017-65, 1st Panel of the 2nd Chamber of the 3rd Section of CARF, ruling No. 3201-012.196, published on January 13, 2025).

Referendum of decision suspending FUNRURAL cases (February 14-21, 2025)

In a virtual session concluded on February 22, 2025, the STF justices endorsed Justice Gilmar Mendes’ monocratic decision in Direct Action for the Declaration of Unconstitutionality “(ADI”) 4395, which addresses the social contribution to the Rural Workers’ Assistance Fund (“FUNRURAL”).

The rapporteur’s decision was unanimously upheld, suspending all cases involving the subrogation of FUNRURAL, that is, purchasers of production paying the contribution on behalf of the rural producer.

The Court has already reached the majority of votes to validate the contribution, but has not yet decided on the possibility of subrogation. By suspending the cases until the outcome of the trial is announced, Mendes granted a request from the meat industry, which claimed legal uncertainty in cases relating to the subject, and argued that Justice Dias Toffoli might change his vote, which would represent a turning point in the trial, since in that case the score would be 6-5 in favor of declaring the FUNRURAL contribution unconstitutional.

FINANCIAL REGULATION

CVM releases Agribusiness Private Finance Newsletter

The CVM has released the January 2025 Agribusiness Private Finance Newsletter, created by the General Coordination of Market and Financing Instruments of the Ministry of Agriculture and Livestock (”MAPA”).

This monthly newsletter provides detailed information on the performance of the main private fundraising instruments for financing Brazilian agribusiness production chains.

The newsletter highlights the significant growth of the main financial instruments used in agribusiness. Between December 2020 and December 2024, the stock of Rural Product Notes (“CPR”) increased by 2041%, reaching BRL 476.7 billion. Agribusiness Credit Bills (“LCA”) also significantly increased 381% over the same period, reaching BRL 516.99 billion.

Other highlights include the growth of Agribusiness Credit Rights Certificates (“CDCA”) and CRA, which increased by 290% and 217%, respectively, between 2020 and 2024. FIAGRO’s net worth also recorded a remarkable increase, rising from BRL 1 billion in November 2021 to BRL 40.9 billion in November 2024.

The newsletter also addresses the diversification of the items financed by CPRs, which include animal production, fruit, grains, vegetables, inputs and services, processed products, forestry products and sustainability activities. This diversification reflects the wide range of activities in Brazilian agribusiness and the importance of robust financing for the sector.

In addition, the document highlights the importance of new regulations for capital markets, such as CVM Resolution 214 of September 30, 2024, which establishes the final regulation for FIAGRO. These regulations aim to facilitate the agricultural sector’s access to public savings resources and guarantee high standards of conduct, transparency and governance.

In addition, the newsletter provides data on the participation of different financial institutions in rural credit with LCA sources, highlighting the predominance of public banks, which account for 57% of contracts. Private banks, credit cooperatives and other financial institutions complete the agribusiness financing landscape.

Finally, the document highlights the evolution of the agribusiness capital markets, revealing a significant increase in financial volume and in the number of registered transactions. Such growth reflects investor confidence in the Brazilian agribusiness sector and the importance of a solid regulatory environment to sustain this development.

In summary, the January 2025 Agribusiness Private Finance Newsletter provides a comprehensive and detailed overview of the performance of financial instruments in agribusiness. It highlights the sector’s robust growth and diversification and the importance of regulations to ensure a transparent and secure business environment.

For more information: Agribusiness Private Finance Newsletter – January 2025

ENVIRONMENTAL REGULATION

Environmental licensing

FEDERAL

Ministry of the Environment publishes updated list of migratory species of wild animals

On February 10, 2025, the Ministry of the Environment (“MMA”) published GM/MMA Ordinance No. 1,314, of February 10, 2025, disclosing the list of migratory species of wild animals included in Annexes I and II of the Convention on the Conservation of Migratory Species of Wild Animals (“CMS”).

The list was updated during the 14th Conference of the Parties to the CMS, held in Samarkand, Uzbekistan, from February 12 to 17, 2024, and is available on the website of the Ministry of the Environment.

The Government and the community must adopt measures to conserve and restore important habitats, prevent and minimize the adverse effects of activities that hinder the migration of the species listed in Annex I, and prioritize the conservation of the species listed in Annex II, especially those in unfavorable conservation status.

The capture of animals of the species listed in Annex I is prohibited, except for scientific purposes, to improve the propagation or survival of the species or to meet the needs of a traditional subsistence economy with the authorization of the appropriate body.

PIAUÍ

Piauí regulates environmental licensing public hearings to increase transparency and society participation

On February 05, 2025, the Secretariat for the Environment and Water Resources of the State of Piauí (“SEMARH”) published SEMARH Ordinance No. 10/2025, which regulates public hearings within the scope of environmental licensing.

The ordinance, signed by the Secretary for the Environment and Water Resources, establishes procedures for holding public hearings relating to the environmental licensing of works, projects and activities that use environmental resources and are considered potentially polluting or that could cause significant environmental degradation.

The ordinance highlights the importance of transparency and society’s participation in the licensing process, ensuring the effective contribution of the population. Public hearings will be held whenever necessary or when requested by civil organizations, the Public Prosecution Office or 50 or more citizens.

Hearing participants must register their attendance and the hearing will be composed of a board of directors, chaired by the State Secretary for the Environment and Water Resources or a representative. During the hearing, the developer or the consulting company responsible for the Environmental Impact Study (”EIA”) and Environmental Impact Report (“RIMA”) will present the project and its targets.

The hearing will include a technical presentation by the team responsible for the EIA/RIMA, followed by a period of questions and debate. The questions must relate to the project’s environmental issues. The board of directors and developer representatives will answer them.

After the hearing, minutes will be drawn up, forming part of the corresponding administrative proceedings. The hearing will be audio and CD-R recorded to ensure the integrity of the information. Comments, statements and suggestions can be submitted electronically to SEMARH up to five working days after the hearing.

Climate change

FEDERAL

Ministry of Transport launches PRO-AdaptaVias Program, aimed at increasing the resilience of federal land transport infrastructure to climate change

On February 07, 2025, the Ministry of Transport published MTR Ordinance No. 64/2025, establishing guidelines for implementing the PRO-AdaptaVias program, which will involve bodies such as the National Department of Transport Infrastructure (DNIT), the National Land Transport Agency (ANTT) and Infra S.A.

PRO-AdaptaVias program is based on four main axes: planning and implementing adaptation measures, economic and financial incentives, communication and social engagement, and research and development. The aim is to create a strategic plan considering short-, medium- and long-term actions, prioritizing urgent and high-impact interventions.

The Undersecretariat for Sustainability will coordinate the program and foster actions such as the assessment of climate risks and impacts, the selection and implementation of adaptation measures, and integration with national policies and plans. In addition, SIM-AdaptaVias will be implemented, an intelligence and monitoring system that will consolidate and disseminate information on climate risks and resilience.

The program also aims to strengthen partnerships with universities, research institutes, and the private sector and facilitate access to funding sources for adaptation actions. Priorities also include the technical training of the bodies responsible and the conduct of economic analyses to support decisions.

With this initiative, the Ministry of Transport hopes not only to mitigate the impacts of climate change but also to foster sustainable and inclusive development, in line with Brazilian and international climate adaptation policies.

Administrative Proceedings

MINAS GERAIS

Government of Minas Gerais institutes new program to convert environmental fines into sustainability projects

On February 11, 2025, the governor of the state of Minas Gerais published Decree No. 48,994/2025, establishing the State Program for the Conversion of Environmental Fines (”PECMA”).

PECMA aims to convert environmental fines into services for conservation, preservation, improvement, and recovery of environmental quality. It also finances socio-environmental projects, environmental education, and the improvement of environmental regularization and inspection.

Fines can be either transferred to the state treasury or invested directly by the offender, through the implementation of specific projects. Accession to PECMA will be through the signing of an Administrative Composition Agreement (“TCA”) between the offender and the competent environmental agency, containing information such as the amount of the fine, deadlines and conditions for fulfilling the obligation.

The TCA is a voluntary instrument effective as an extrajudicial enforcement instrument. The execution of the TCA can result in a reduction of up to 50% in the amount of the fine, depending on when the offender expresses interest in acceding to PECMA. Failure to comply with the TCA implies adopting procedures necessary for its execution, with the application of fines, interest and monetary correction.

The State Secretariat for the Environment and Sustainable Development will create a project bank to enable the financing of environmental projects. These projects can be presented by individuals and non-profit public and private companies and must meet criteria such as fulfilling the property’s socio-environmental function and fostering family farming.

The Executive Branch may sign partnership agreements, management contracts, or similar instruments to obtain support for project selection and implementation. Environmental projects fostered with PECMA funds may receive resources from third parties or other funding sources.

The decree also establishes the PECMA Coordinating Group, which is responsible for deciding on the topics of the calls for proposals and composing the project bank. For administrative proceedings initiated before January 10, 2025, accession to PECMA will imply a 50% reduction in the fine if the interested party expresses interest by July 10, 2025.

Initiatives

FEDERAL

Proposal aims to improve the use of FNMA funds for R&D in sustainable production

On February 10, 2025, on the initiative of representative Márcio Honaiser (PDT/MA), Bill 359 (“PL 359/2025”) was proposed to optimize the allocation of funds from the National Environment Fund (“FNMA”), allowing them to be used for research and development (“R&D”) projects aimed at the sustainable production of human food and animal feed.

The initiative aims to strengthen innovation in agribusiness, increasing the sector’s competitiveness without compromising sustainability.

Considering the ban on the creation of new public funds, according to article 167, item XIV, of the Federal Constitution, the proposal suggests amending the FNMA to explicitly state the possibility of financing R&D programs and projects in sustainable production.

Recognizing the agricultural sector’s importance to the Brazilian economy, the measure highlights the need for solutions that make production more efficient and sustainable, in line with international market demands.

The proposal also aims to meet the growing demands of consumer markets, especially abroad, which value sustainable and responsible practices. Targeting resources towards innovation in production processes will enable the incorporation of new technologies and alternative ingredients, such as agroindustrial by-products and protein sources with a low environmental impact. As a result, the agricultural sector will be able to reduce greenhouse gas emissions and increase its competitiveness, adding value to its products.

Currently, Bill 359/2025 is waiting to be assigned to the committees that will review it in the House of Representatives.

Source: House of Representatives – Bill 359/2025

Bill proposes tax incentive for agricultural research

On February 11, 2025, representative Zé Vitor (PL/MG) presented Bill 380/2025, proposing the establishment of an additional mechanism for raising and directing funds to stimulate Brazilian agricultural research.

The proposal suggests granting tax incentives to individuals or companies that allocate part of their income tax to financing research and technological development projects in the rural sector.

The National Agricultural Research System, created by MAPA and coordinated by the Brazilian Agricultural Research Corporation (“EMBRAPA”), includes various public and private entities, including State Agricultural Research Organizations, universities, cooperatives, unions, foundations and associations, all linked to agricultural research.

Currently, agricultural research in Brazil is mainly financed by funds from the budgets of the Federal Government, states, the Federal District and municipalities, as well as funds from the National Fund for Scientific and Technological Development earmarked for the Agribusiness Sector Fund.

Source: House of Representatives – Bill 380/2025

Forestry Matters

FEDERAL

IBAMA implements new regulation for migrating forest authorization balances to the DOF+ System

On February 07, 2025, the Brazilian Institute for the Environment and Renewable Natural Resources (“IBAMA”) published Normative Instruction No. 03/2025, regulating the migration of forest exploitation authorization balances to the Document of Forest Origin Traceability System (’ DOF+ ”).

As of February 10, 2025, the credits from tracing/dimensioning or logging registration stages of all forest harvesting permits in the National System for Controlling the Origin of Forest Products (“SINAFLOR+”) were migrated exclusively to the DOF+.

This measure also applies to credits from cutting declarations arising from logging permits issued under SINAFLOR+ and integrated state systems. The authorization balances issued before December 05, 2022, which were partially or fully transferred to the DOF Legado system, will remain available for transactions until the data is fully migrated to DOF+, on a date to be set by IBAMA.

IBAMA will adopt a mass migration solution for the balances of authorizations already in the DOF Legado system, as long as they are still in force. Until this migration is operational, there will be no flow of authorization credits between the DOF Legado and DOF+ systems, apart from exceptions subject to management activity.

Logging permits issued in the SINAFLOR system before August 21, 2020, will not have their balances migrated to the DOF Legado and DOF+ systems, as they do not meet the traceability criteria. In the event that it is necessary to recognize the stocks generated in these authorizations, holders must register the projects again and obtain new approval in SINAFLOR and SINAFLOR+ according to the types of authorizations provided for in IBAMA Normative Instruction No. 21, of December 24, 2014. After approval, traceability will be operationalized in SINAFLOR+ and the credits will migrate to DOF+, following the regulations established by IBAMA Normative Instruction No. 16, of November 25, 2022.

ICMBio recognizes list of invasive alien species in Federal Conservation Units

On February 12, 2025, the Chico Mendes Institute for Biodiversity Conservation (“ICMBio”) published ICMBio Ordinance No. 510/2025, officially recognizing the List of Invasive Alien Species in Federal Conservation Units.

The ordinance, signed by ICMBio’s president, establishes that the invasive alien species of flora and fauna present in these units are those on the list on ICMBio’s website. This ordinance does not apply to Private Natural Heritage Reserves (“RPPN”).

The Biodiversity Research, Assessment and Monitoring Directorate (“Dibio”) is responsible for drawing up the list, which will be updated periodically. A species’ classification as an invasive alien is independent of its presence on the list, and these species are considered harmful according to Federal Law No. 5,197/1967, which provides for the protection of fauna, and Federal Law No. 9,605/1998. For the purposes of this ordinance, feral or wild animals are considered invasive alien species.

The planning and development of actions to control or eradicate these species is a priority for the conservation units listed. These units are recommended to draw up and implement specific prevention, eradication, control and monitoring plans, following guidelines published by Dibio.

When more than one invasive alien species is found in a conservation unit, the management team must prioritize the species to be managed, taking into account aspects such as the unit’s management plan, impacts on native species and sensitive environments, and the difficulty of management. Dibio will publish a tool to assist in this prioritization process.

Preventive control and monitoring measures are necessary to prevent dispersal and biological invasion beyond the areas destined for animal husbandry and cultivation of invasive exotic plant species. Authorizations to breed or cultivate these species must provide for such measures.

The review or development of management plans for protected areas must include regulations and strategies for the prevention, control, eradication and monitoring of invasive alien species. A roadmap for updating the list of invasive alien species has been established, available on the ICMBio website, which establishes flows, procedures and deadlines.

The procedures for authorizing the management of these species in federal conservation units are regulated by specific regulations. This ordinance entered into force on the date of its publication.

Agro economy

FEDERAL

Government launches Desenrola Rural Program to facilitate access to credit and debt settlement for family farming

On February 12, 2025, Decree No. 12,381/2025 establishing the Program for Debt Settlement and Facilitating Access to Rural Credit for Family Farming, called Desenrola Rural.

The program aims to implement measures that facilitate access to new financing and the settlement or renegotiation of debts owed by family farmers and family farming cooperatives.

Desenrola Rural covers debts registered as overdue by the Federal Government, recorded as losses by the Constitutional Financing Funds of the Northeast (“FNE”), North (“FNO”), and Midwest (“FCO”), and debts overdue for more than 180 days. It also covers installation credits contracted by beneficiaries of programs such as the National Land Credit Program (“PNCF”) and the National Agrarian Reform Program (“PNRA”).

The purpose of the program includes offering easier conditions for settling and renegotiating debts, facilitating the recovery of defaults, expanding access to the financing lines of the National Program for Strengthening Family Farming (“PRONAF”), fostering the economic sustainability of family farming and encouraging the recovery of funds by the Federal Government and constitutional funds.

The beneficiaries of Desenrola Rural are family farmers and cooperatives with debts registered as overdue by the Federal Government, with rural credit installments accounted for at a loss by the constitutional funds, agrarian reform beneficiaries with installation credit transactions in default, and those with debts more than 180 days in arrears with financial institutions.

The program will be implemented by the Federal Government through the Office of the General Counsel for the Federal

Treasury and the National Institute for Colonization and Agrarian Reform (”INCRA”), by the financial institutions managing the constitutional funds and by the financial institutions authorized to operate rural credit by the Central Bank of Brazil.

Family farmers and cooperatives will be able to access ways of settling and renegotiating debts, settle or renegotiate installments of rural credit transactions contracted under PRONAF, and settle installation credits granted to agrarian reform beneficiaries at a discount.

The decree authorizes granting a discount for settling installments of rural credit transactions in default until December 31, 2025, and renegotiating installments of rural credit transactions contracted under PRONAF between 2012 and 2022. It also authorizes granting discounts for settling installation credit transactions contracted by agrarian reform beneficiaries between 2014 and 2022.

The Ministry of Agrarian Development and Family Farming, the Ministry of Finance, and the Ministry of Integration and Regional Development will jointly monitor and evaluate Desenrola Rural to ensure transparency of results and facilitate analysis of the program’s impact.

MAPA establishes Traceability Steering Committee

On February 07, 2025, MAPA established the Traceability Steering Committee (“CGR”) through DAS/MAPA Ordinance No. 1.240/2025, following the discussions of the working group created by SDA/MAPA Ordinance No. 1113, of May 14, 2024.

The CGR is advisory and is responsible for coordinating the implementation of the Strategic Plan 2025-2032 of the National Plan for the Individual Identification of Cattle and Buffaloes (“PNIB”). It will also be made up of representatives from various entities, including the Secretariat for Agricultural Defense, EMBRAPA and associations from the agricultural sector.

Committee meetings will be held monthly or extraordinarily, as convened by the coordinator, and participation will be considered a relevant public service, without remuneration. The committee will remain active throughout the implementation period of the strategic plan.

FEDERAL DISTRICT

Ordinance establishing criteria for the distribution of agricultural inputs and materials to rural producers in the Federal District published

On February 04, 2025, the State Secretariat for Agriculture, Supply and Rural Development of the Federal District published SEAGRI Ordinance No. 49/2025, authorizing the free distribution of agricultural inputs and materials to rural producers in the Federal District.

The measure aims to stimulate the generation of work and income in rural areas, and to foster rural development and socio-productive inclusion.

Inputs include fertilizers, seedlings, seeds, genetic material, limestone, bioinputs and others used in agricultural production. Materials include items to support production activities, such as irrigation materials and tools.

The Undersecretariat for Rural Social Policies, Supply and Commercialization of the Secretariat for Agriculture, Livestock, Irrigation, Fisheries and Aquaculture (“SEAGRI”) will manage the distribution with the support of the Federal District’s Technical Assistance and Rural Extension Company. The priority beneficiaries are family farmers, agrarian reform settlers and their associations and cooperatives, who must be registered in the Single Registry for Social Programs and have a monthly family income of up to three minimum wages.

ALAGOAS

SEAGRI of Alagoas establishes criteria for distributing seeds and fostering family farming in the 2025 harvest

On February 13, 2025, the Secretariat of Agriculture and Livestock of the State of Alagoas (”SEAGRI/AL”), published SEAGRI Ordinance No. 53/2025, establishing operational criteria to foster production through representative organizations of rural producers, family farmers and municipal federative entities.

The initiative aims to distribute seeds for planting the 2025 harvest throughout the state.

The ordinance highlights the need to establish rules on access to seeds, fostering the development of family farming and its representative organizations. The seeds will be distributed based on an analysis of requests submitted by governmental and non-governmental entities linked to the agricultural sector.

Organizations representing family farming, cooperatives, associations and family farmers can register to join the program. The deadline for applying for the program will be ten calendar days from the first working day after publication of the ordinance. The State Commission for the Seed Distribution Program will analyze and validate applications, prioritizing Indigenous farmers, quilombolas, and agrarian reform campers. The seeds will be distributed at the distribution centers in Rio Largo and Arapiraca, upon presentation of a voucher.

General

RIO GRANDE DO NORTE

Law with strict sanctions to combat adulterated fuel enacted.

On February 07, 2025, State Law No. 12,076/2025, was published, establishing administrative sanctions for the acquisition, transportation, storage, distribution or resale of adulterated fuel.

The law provides for fines, seizure and forfeiture of the product, partial or total interdiction of the establishment and revocation of state registration with the ICMS Taxpayers Registry.

Non-compliance will be confirmed by a report from the Brazilian National Agency for Petroleum, Natural Gas and Biofuels (“ANP”) or accredited entities. The sanctions can be applied cumulatively, and the fine varies between 5,000 and 50,000 UFIRN’s (Reference Tax Unit of the State of Rio Grande do Norte) depending on the background and the amount of adulterated fuel. The seized product will be incorporated into the state’s assets for appropriate use or disposal. The ban may be temporary or permanent, and the state registration will be revoked if all sanctions are repeated.

When preliminary tests indicate non-compliance, the tax agent will take immediate measures, such as seizing the fuel and sealing the tank and pump, forwarding the notice to the competent body to apply the other sanctions.

The new law repeals Article 3 of Law No. 11,057 of January 14, 2022, and enters into force 45 days after its publication, i.e. on March 24, 2025.

MATO GROSSO

On February 12, 2025, the State Government of Mato Grosso published Decree No. 1,339/2025, approving the new internal regulations of the Institute for Agricultural Defense of the State of Mato Grosso (”INDEA”) INDEA’s new internal regulations define its responsibilities, which include planning and executing agricultural defense actions, fostering studies, integrating agricultural and forestry defense actions, proposing agreements, training human resources and holding scientific events. The organizational structure of INDEA is divided into a number of levels, including councils, directorates, coordinating offices and regional units.

 MAPA – MINISTRY OF AGRICULTURE AND LIVESTOCK REGULATION:

Compliance requirements for the healthier milk program

On February 05, 2025, MAPA published MAPA Ordinance No. 768/25, providing for the applicable procedures to comply with Decree No. 8.533/15, which established the Healthier Milk Program.

The new ordinance defines the responsibilities, inspection and compliance processes for companies and cooperatives participating in the program.

The official inspection services for products of animal origin will be responsible for inspecting the origin and compliance of the inputs used by the companies benefiting from the program. Qualified companies and cooperatives must only use fresh milk or dairy products that meet the requirements of the decree. In the event of non-compliance, companies’ tax benefits are suspended for three months, according to the rates established by the decree.

The inspection body must report any irregularities to MAPA, which in turn will notify the company or cooperative involved. The notified companies will have ten days to file defense. If the defense is rejected, the company can appeal with both the lower and upper courts, within ten days for each appeal. If the company fails to present a defense or appeal within the established time limits, the authority will report the irregularities to the Federal Revenue Office.

The new ordinance entered into force on February 05, 2025 and repealed MAPA Ordinance No. 661/24.

New phytosanitary requirements for importing Impatiens

On February 04, 2025, MAPA published SDA/MAPA Ordinance No. 1,237, which establishes the phytosanitary requirements for importing Impatiens propagating material of any origin.

The species covered include Impatiens balsamina, Impatiens flaccida, Impatiens walleriana and Impatiens hawkeri, as well as their intraspecific hybrids.

The ordinance establishes that Impatiens seedlings, cuttings, in vitro seedlings and seeds must be accompanied by a Phytosanitary Certificate issued by the National Phytosanitary Protection Organization (“ONPF”) of the country of origin, with additional specific declarations attesting to the absence of pests and viruses, as defined in the ordinance.

Shipments are subject to inspection at the point of entry and the collection of samples for phytosanitary analysis in official laboratories or laboratories accredited by MAPA. The interested party must bear the costs of these analyses.

In the event of the interception of quarantine pests or pests with quarantine potential, the shipment will be destroyed or rejected and the NPPO of the country of origin will be notified, and the national NPPO may suspend imports until the pest risk analysis has been reviewed.

The ordinance entered into force on February 04, 2025, subject to a period of up to 180 days for the NPPOs of the countries of origin to adapt their procedures in accordance with the new ordinance, applicable as follows for:

• Impatiens walleriana seeds from Germany, Costa Rica, Denmark, the United States of America, France, Japan and the Netherlands;
• Impatiens balsamina seeds from Germany, China, Denmark, the United States of America, France, the Netherlands and Tanzania;
• Impatiens hawkeri seeds from the United States of America;
• Impatiens seedlings, in vitro seedlings and cuttings from Germany and the United States of America;
• Impatiens hawkeri seedlings from the Netherlands; and
• Impatiens walleriana cuttings from Italy.

MAPA updates fees for seeds and seedlings

Published on February 03, 2025, MAPA Ordinance No. 770/25 replaces the annex to MAPA Ordinance No. 647/24, which sets the updated values for seed and seedling fees.

MAPA opens public consultation on updating the list of plant species introduced in Brazil

Published on February 07, 2025, SDI/MAPA Ordinance No. 736/25 seeks to receive contributions for updating the reference list of domesticated or cultivated plant species introduced into Brazilian territory and used in agricultural activities, in accordance with Article 113 of Decree No. 8,772/16.

This decree regulates Law No. 13,123/15, which provides for access to genetic heritage, protection and access to associated traditional knowledge and benefit sharing for the conservation and sustainable use of biodiversity.

Interested parties can submit their contributions through the MAPA portal by April 08, 2025.

MAPA opens public consultation on zoogenetic evaluation of bovine, bubaline, ovine and caprine breeding stock

On February 04, 2025, MAPA published SDA/MAPA Ordinance No. 1.238/25, which submits to public consultation, for a period of 60 days, the draft ordinance that establishes rules and procedures for the zoo-genetic evaluation and genetic quality classification of bovine, bubaline, ovine and caprine breeding stock.

Interested parties can submit their contributions through the MAPA portal by April 08, 2025. 

The proposed draft is intended to repeal the current MAPA Normative Instruction No. 1238/25, which regulates the topic, and should update the rules and conditions on the genetic classification of breeding stock enrolled in semen collection and processing centers registered with MAPA.

REAL ESTATE REGULATION

System that allows the unavailability of properties with a specific value of the debt under execution goes into operation

As reported in the previous edition of this newsletter, the National Council of Justice (“CNJ”) issued Provision No. 188, of December 04, 2024, which regulates the operation of the National Property Unavailability Center (“CNIB”) 2.0, aimed at registering orders for the unavailability of specific assets or assets without distinction, as well as orders for the cancellation of unavailability.

CNIB 2.0 was fully implemented on February 14, 2025 and its main innovation was the possibility of restricting the unavailability only to the assets designated by the court decision regarding the debt, and not to the debtor’s entire estate.

The novelty allows only assets directly linked to the debt to be affected, protecting other assets of the debtor not involved in the dispute. This reduces the impact of the execution on the debtor’s assets and provides greater legal certainty by establishing clear limits for the unavailability of assets.

Thus, with CNIB 2.0, the process becomes more precise and efficient, improving the business environment and providing greater legal certainty for debtors by avoiding the unavailability of assets that are not directly linked to the debt.

Decision allows registration of mortgage on property with fiduciary sale

The 21st Specialized Civil Chamber of the Minas Gerais Court of Justice (“TJMG”) overturned a ruling by the Belo Horizonte District Court, allowing the registration of a mortgage on a property with fiduciary sale in favor of another creditor.

The case, initiated by a doubt at the notary’s office, involved a property valued at almost BRL 2 million and the guarantees represented only 52% of the property’s value, which indicated the possibility of default in the event of a foreclosure.

The court based its decision on Law No. 14,711/2023 (“Legal Framework for Guarantees”), which allows successive guarantees on the same property, provided that the legal conditions are respected. In the case at hand, in accordance with the Legal Framework for Guarantees, the creditor had accepted the conditions of the successive guarantees, in addition to the guarantees being different and for different obligations.

In this regard, the decision emphasized the importance of guaranteeing future ownership of the property to the original fiduciary creditor, while the debt is outstanding, and that it is possible for fiduciary sale and mortgage to coexist on the same property, with no conflict subsisting due to the priority of registry and private autonomy.