Brazil’s Senate has approved Provisional Measure 1.376/2026, sending to President Luiz Inácio Lula da Silva a plan that lets rural producers affected by extreme weather renegotiate debts. The vote came on the measure’s final day of validity, after approval in a joint congressional committee and the Chamber of Deputies.¹

The legislation broadens eligibility by allowing debts dating to January 2021 to be renegotiated, rather than only those from January 2024. It also lowers loss thresholds in areas covered by the Amazon, Northeast and Center-West development agencies, permits wider use of collective technical reports to document damage, and includes additional rural-product-credit operations.¹

Farm caucus leaders described those changes as meaningful progress. Pedro Lupion, president of the Agricultural Parliamentary Front, said they were “important, forceful advances,” while adding that the group would keep pressing for a broader guarantee fund. Senator Tereza Cristina stressed that the proposal does not erase obligations: “It is not debt forgiveness, only renegotiation and installment payments over more periods, more years ahead.”¹

Senator Hamilton Mourão offered a more qualified assessment. He acknowledged that more producers would benefit and that repayment periods had been extended, but said: “We were unable to improve the interest rates.” The measure retains annual rates of 6% for Pronaf family-farming borrowers, 9% for Pronamp medium producers and 12% for other producers, with lower rates for more severe losses.¹

Separately, Senate President Davi Alcolumbre removed provisions added by the Chamber on electronic cigarettes, duty-free shops and old housing-finance debts. Senators across party lines had objected that the additions were unrelated to rural credit. Humberto Costa warned that vapes “are not harmless” and cited nicotine, toxic substances and heavy metals among potential risks.²