Private credit titles: a financing alternative for agribusiness
Keywords:
Crédito rural, Título de crédito privado, Financiamento rural, Cadeias agroindustriais.Abstract
For many years, sources of financing for Brazilian agribusiness were predominantly anchored in
public financing. However, over time, this reality changed. In 1994, with the need for a greater volume of resources to invest in the growing agricultural production, new private securities emerged, such as the Rural Product Note (CPR), Agribusiness Credit Bill (LCA), and Agribusiness
Receivables Certificate (CRA), among others. Therefore, this study aimed to investigate how rural credits originating from private credit instruments (LCA and CRA) have reached Brazilian rural producers. To this end, three cases of credit concession with resources from private instruments were identified: two backed by LCA and one CPR issued as collateral for raising funds in the capital market via CRA. The results of the cases studied showed that LCA and CRA are realities in rural credit acquisition and contribute to increasing the supply of credit to the sector. Case II showed a higher profitability rate (39.46%) compared to Cases I and III. Cases I and III presented the same effective interest rates (17.18% p.a.).
