Ensuring Minimum Remuneration for Rural Producers
The Ministry of Agriculture and Livestock has updated the minimum prices for summer and regional products for the 2024/2025 and 2025 harvests. These prices will serve as reference points in operations related to the Minimum Price Guarantee Policy (PGPM), aimed at ensuring minimum remuneration for rural producers.
The new values were fixed by the National Monetary Council through a vote, based on the proposal submitted by Mapa and the National Supply Company (Conab). Ordinance No. 700, which updates the prices, was published on Tuesday (16) in the Official Gazette of the Union.
Updated Minimum Prices for Key Crops
The updated minimum prices include crops such as corn, soybeans, sorghum, cotton (seed and lint), long grain paddy rice, cultivated natural rubber, field latex, cultivated cocoa (almond), colored beans, milk, cassava, and other crops and seeds. This measure covers all regions of Brazil and is valid from July of this year until December 2025.
For the formulation of the proposal containing the suggestions for the new minimum prices, Conab considers factors such as variable production costs and other market conditions. The adjustments in the current table vary from -11.86% (for soybeans, 60kg sack, at the national level) to 14.71% (for cultivated cocoa almond in the Midwest and North). Long grain paddy and long paddy rice saw variations between 5% and 10%. In the South (except Paraná), the variation was 5%, while in the Midwest, Northeast, North, Southeast, and Paraná, it was 10%.
Understanding the PGPM
The minimum price is updated annually, and Conab is responsible for proposing prices related to PGPM and the Minimum Price Guarantee Policy for Sociobiodiversity Products (PGPM-Bio).
According to Article 5 of Decree-Law No. 79/1966, the minimum price proposals must consider various factors influencing domestic and international market prices, as well as production costs.
The minimum prices are set before the start of the following harvest and serve to guide producers’ planting decisions. They also indicate the Federal Government’s commitment to acquiring or subsidizing agricultural products if market prices fall below the established minimum prices.
Error
