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Prioritizing lives and rebuilding businesses in the agricultural sector in Rio Grande do Sul

Dr. Giovanna Sartório, managing partner of Sartório, Reis Advogados, highlights the importance of legal action in recovering the activities of affected rural producers in RS

Curitiba, June 19, 2024 –  There is no doubt that the priority in the Rio Grande do Sul tragedy is to save human and animal lives. But we know that there is concern about rebuilding the homes and businesses of families affected by the floods. “For affected rural producers, activating rural insurance would be an effective measure, however, in practice, few producers have it”, highlights Dr. Giovanna Sartório.

According to the specialist in rural law, there are estimates that only 9 thousand producers in Rio Grande do Sul have taken out rural insurance for the 2023/24 summer harvest. “And, in these cases, we see problems with activating insurance, as there is a need for expertise, which is complicated to carry out in the current adverse conditions”, he highlights and reminds that rural producers can also evaluate the feasibility of activating insurance for machines and agricultural equipment. 

Another point that must be taken into consideration is Law No. 13,340/2016, which establishes the Non-Tax Debt Regularization Program. According to the lawyer, it allows farmers affected by natural disasters, such as floods, to renegotiate their rural debts with special conditions, aiming to help them overcome the financial impacts of these climate events. “The renegotiation of rural credits provides farmers with more favorable payment conditions, such as longer terms, interest reduction and even discounts in specific cases”, he explains and adds that this can be fundamental for rural producers to be able to recover from damages. caused by floods and continue with their agricultural activities in a sustainable way. 

Regarding the rains in Rio Grande do Sul, Dr. Giovana highlights that the National Monetary Council (CMN) authorized financial institutions to extend, on an emergency basis, the payment of debts by rural producers in municipalities in the State. It reinforces that the extension of this measure is valid for financing and interest installments of rural credit operations for funding, investments and commercialization that mature from May 1st to August 14th of this year. 

“It is important that rural producers are aware of the requirements and procedures to access these credit renegotiation opportunities, seeking information from financial institutions, competent bodies and specialized law firms to assist in contractual analyzes and renegotiations”, assesses the managing partner do Sartório, Reis Advogados. 

About Sartório, Reis Advogados  – The Sartório, Reis Advogados office offers comprehensive legal advice in various areas of law, with an emphasis on Business Law, Agrarian Law, Real Estate Law, Family Law and Successions, among others. With a highly qualified team, the office stands out for its personalized and strategic approach, promoting effective legal solutions for its clients in a sustainable way. 

Arthur Rodrigo Ribeiro 
Giracom – Agro Communication & Marketing 

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