Federal incentives can generate self-sustaining farms

2023-09-01 15:57:14

The new Harvest Plan for 2023-2024 announced by the federal government this month focuses on sustainability and has more incentives for environmentally sustainable agricultural production systems than the previous edition. The Safra Plan aims to support the agricultural sector, offering financial incentives to rural producers of all sizes.

This year’s program provides a total of R$ 364.22 billion in rural credit for investment in the agricultural sector, an amount that is 26.8% greater than the amount allocated in the previous plan. There are 13 financing programs that encourage the modernization and innovation of productive activities, such as Inovagro, which is destined to investments in technological innovations, and Moderagro, which includes incentives for environmental conservation.

One of these 13 programs, Renovagro (Program for Financing Sustainable Agricultural Production Systems) is divided into three categories and provides financing of up to R$ 5 million for the recovery of legal reserves and the implementation of alternative energy systems. Other types of incentives aimed at environmental conservation are the reduction of interest rates to encourage the recovery of pastures and financial rewards for rural producers who adopt sustainable farming practices.

Towards energy self-sufficiency in agribusiness

One of the alternative energy systems that can benefit from Renovagro’s incentives is photovoltaic energy. Sue Ellen Lourenção, administrative and financial director of iLuminus Energia Solar in Patrocínio (MG), explains that “by offering subsidies, credits or tax discounts for alternative energy systems, the government facilitates farmers’ access to agro-photovoltaic systems”.

She points out that the focus on sustainability in this edition of the plan can help promote energy self-sufficiency on farms, “by combining agricultural production with clean energy generation, offering various incentives for the use of solar energy on farms, such as credit lines specific areas, technical training, promotion of research, among others”

According to most recent data from ABSOLAR (Brazilian Association of Solar Photovoltaic Energy), the rural sector accounts for the consumption of 14.7%, in installed capacity, of photovoltaic solar energy distributed in Brazil. For comparison, the industrial sector corresponds to 6.8%. In total, there are 176,605 photovoltaic lighting systems installed in the rural sector.

In this sector, solar energy can be used for various purposes, from the simplest, such as lighting and refrigeration, to powering automation and crop monitoring systems. In all cases, the possibility of generating, on the farm itself, the light that is consumed in production helps to reduce operating costs and dependence on conventional energy sources.

For Lourenção, investment in solar current is interesting for agribusiness due to the natural cost reduction, which will be boosted by the incentives of the new Safra plan. “Solar energy can strengthen agribusiness through the Safra Plan, with this incentive to implement a system that has lower costs, in addition to being a clean source of lighting that can also enhance the producer’s brand and offer an additional source of income by selling surpluses. This would result, according to her, in the sustainable growth of the sector.

According to data accumulated by ABSOLAR since 2012, photovoltaic solar energy has already generated more than R$ 155.6 billion in investments in Brazil and has already avoided the emission of more than 40.6 million tons of CO2. “We can hope for self-sustainable farms, generating more clean energy and emitting less carbon, and which have greater productivity due to reduced operating costs”, concludes Lourenção.

To learn more, just go to: @iluminussolar @iluminus.patrocinio

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