Agritech sees resumption of investments with Harvest Plan 2026/27

Unlike other agricultural machinery manufacturers, Agritech hopes that resources from the 2026/27 Harvest Plan will help the sector to resume investments. The company specializes in tractors and implements aimed at small and medium-sized producers.

"Although the company considers the expansion of the budget and the reduction in interest rates announced by the Federal Government to be positive, the effects on the market will depend on the effective contracting of credit lines by farmers", the company disclosed in a note.

In this edition of Pronaf (National Program for Strengthening Family Agriculture), R$ 85.2 billion are forecast, an amount 9% higher than the R$ 78.2 billion in the previous harvest. The funding lines now operate with interest rates between 1% and 7.5% per year, compared to the range of 2% to 8% in the previous cycle. The investment lines will have rates between 1% and 5% for the acquisition of machinery and equipment and up to 7.5% for other purposes.

For Agritech's Sales and Marketing Manager, Cesar Roberto Guimarães de Oliveira, the combination of more resources and lower interest rates tends to improve the environment for rural producers, especially after a period of reduced consumption.

"The government has invested a greater amount of resources and with friendlier interest rates, which is positive. We have felt the effects of the reduction in consumers' purchasing power in recent months. When it hurts Brazilians' pockets, they take their foot off", he says.

Fairs demonstrate caution

Despite the scenario considered more favorable, Oliveira notes that the market still shows caution. According to him, the interest of producers can be perceived by the movement at sector fairs, but this has not automatically converted into business.

"The market is busy. Presence at sector fairs indicates interest, but interest is not synonymous with closing deals. The segment depends on almost 90% of financing. There are few producers who buy in cash", he highlights.

Impact of Moderfrota

In addition to the Harvest Plan, Agritech monitors the prospects for Moderfrota (Fleet Modernization Program for Agricultural Tractors and Associated Implements and Harvesters). For the 2026/27 harvest, the Federal Government allocated R$5.8 billion to the program, with interest rates of 11.5% per year for producers included in Pronamp (National Support Program for Medium Rural Producers) and 12.5% per year for other producers.

The financing covers rural producers and cooperatives with gross annual income of up to R$45 million and provides for payment terms of up to seven years for new machines and up to four years for used equipment.

In Oliveira's assessment, the program has the potential to boost Agritech's sales and accelerate the renewal of agricultural machinery on rural properties, expanding access to mechanization. Even so, its results will depend on the effective execution of the planned resources.

"Moderfrota can create a more favorable environment for an increasing number of producers to have access to mechanization, increasing the productivity and competitiveness of Brazilian agriculture. But the numbers need to get off the ground effectively."

Government formalizes R$525 billion business harvest plan | CNN AGRO NEWS

Source: CNN