View of Janaúba, MG — Photo: Janaúba City Hall
The City Councils of Janaúba and Jaíba, in the North of Minas Gerais, declared a situation of economic emergency in the agricultural sector due to the economic and financial compromise of rural activities in the municipalities.
The measures have an initial duration of 180 days and seek to expand coordination between public authorities, financial institutions and entities linked to the field to reduce the impacts faced by producers.
In Janaúba, municipal decree nº 085, signed by mayor José Aparecido Mendes Santos, highlights that producers have been facing a combination of economic and climatic problems.
The document cites the sector's high debt, the sale of production at prices lower than costs, difficulties in accessing credit and the effects of the drought that hits the region. According to the text, Civil Defense reports pointed to a reduction in river flow, drying up of dams and a decrease in water in artesian wells.
The City Hall also mentions that climatic factors associated with the El Niño and La Niña phenomena contributed to losses in production and producers' income. The decree states that these conditions have been causing "serious economic and financial impairment of rural productive activities carried out in the municipal territory".
Another highlighted point is the situation faced by the regional production chain. The municipality highlights the economic importance of agriculture and records that a refrigeration unit in Janaúba granted collective vacations to 743 employees between September and October this year, a measure attributed to the current conditions of the livestock sector.
In the decree, the municipal administration declares that the emergency was recognized "due to the serious economic and financial compromise of rural productive activities" and establishes as objectives "preserve the productive capacity of rural properties", "promote the maintenance of production and food supply" and "support the permanence of families and workers in rural areas".
Among the planned measures are actions to restore local roads, guidance on credit lines and debt renegotiation, coordination to expand access to technical assistance and referral of producers to state and federal programs.
The municipality may also request support from the state and federal governments to expand rural credit, technical assistance and inclusion of producers in public programs compatible with the identified situation.
Situation in Jaíba
In Jaíba, decree no. 1,833, signed by mayor Jimmy Diogo Silva Murça, also declares an economic emergency in the agricultural sector. The document particularly highlights the irrigated agriculture developed in the Jaíba Project and points out that the crisis results from a combination of climatic, financial, economic and logistical factors.
The City Hall recalls that the municipality had already declared an emergency situation due to the drought in August this year. Furthermore, a technical report prepared by professionals linked to Emater-MG identified impacts related to the water deficit, marketing difficulties, increased operational costs, credit restrictions and high logistical costs.
The decree establishes that an economic emergency is declared "with an emphasis on irrigated agriculture, due to the confluence of climatic, economic, financial and logistical factors that have been compromising the productive and financial capacity of rural producers."
According to City Hall, the measure aims to "institutionally recognize the exceptional economic situation faced by the municipal agricultural sector", in addition to subsidizing support actions for producers and strengthening coordination with public bodies, financial institutions, credit cooperatives and entities representing the sector.
The text also provides for the use of the decree and public documents that support the measure as support for producers interested in requesting extension of rural credit operations, debt renegotiation, restructuring of financial obligations and access to support programs, as long as legal standards and the rules of financial institutions are observed.
However, the municipal administration emphasizes that the decree does not automatically guarantee benefits to producers. The document states that the declaration "does not, in itself, imply novation, change of maturity, suspension of enforceability, moratorium, extension, renegotiation or imposition of any obligation on financial institutions, credit unions, suppliers or other creditors".
