In order to facilitate access to financing and improve rural credit, Executive Order No. 897/19 (the Agro MP) was converted into law on April 7, with the publication of Law No. 13,986/20.

From the original text of the bill, five articles were vetoed by President Jair Bolsonaro, with emphasis on articles 55 to 60, which dealt with concessions of rebates, discounts, waivers, and changes to deadlines for debt renegotiations.

Law No. 13,986/20 has a very significant scope, encompassing various areas of agribusiness related to financing and rural credit. Among the main innovations brought about by the law, the following stand out:

• Establishment of the Solidarity Guarantee Fund (FGS). Through the FGS, credit transactions carried out by rural producers and financing for the implementation and operation of rural connectivity infrastructure are guaranteed by funds paid in by the participants. These funds, notwithstanding the nature of a debt or obligation, will not secure other debts or obligations, present or future, taken on by the participants. The objective is to facilitate the granting of guarantees to creditors and, consequently, to extend loans to agricultural producers.

• Creation of Segregated Rural Property. The owner of a rural property may submit it to segregated asset system, which will be the collateral for the issuance of Rural Product Notes (CPR) or in financial transactions taken on by it through the issuance of Rural Property Notes (CIR), mentioned below. The assets segregated (e.g.: land, additions, and improvements) cannot be accessed by various creditors, except in the case of labor, tax, or social security debts. Normally, assets and rights that are part of the segregated rural estate are not linked to the other assets, rights, and obligations of the owner's general assets or of other segregated rural assets created by it, and the owner may create the fund partially or totally over the rural property.

• Establishment of the Rural Property Note (CIR). The CIR is a book-entry, transferable, and freely traded credit instrument, representing: (i) a promise of payment in cash arising from a credit transaction and (ii) obligation of delivery to the rural property creditor (or fraction thereof) linked to the segregated rural asset, and that is a guarantee of the credit transaction mentioned above. Precisely because it is linked to the segregated rural asset, the CIR will be guaranteed by part or all of the asset. The clear objective of the CIR is to allow access to the regulated securities markets by expanding financing and credit transactions.

• Amendments to the Rural Product Note (CPR). The list of those permitted to issue CPRs has been expanded. According to article 2 of Law No. 8,929/94, the issuance may be done by rural producers (whether individuals or legal entities), cooperatives, and rural producer associations. Essential requirements have also been amended and added to the note, in accordance with article 3 of the law. The issuance of CPRs in card or book-entry form and securities in foreign currency was also permitted, which stimulates the entry of new investors into Brazil.

• Creation and execution of real guarantees. Attending to the longstanding wish of foreign companies or domestic companies equated to foreign companies, the final provisions of Law No. 13,986/20, paragraph 2, of article 1 of Law No. 5,709/71 was amended so as to allow a real guarantee to be created in favor of a foreign party (including fiduciary sale) having as its subject matter rural properties. The foreign party may also receive, in the settlement of transactions, rural property through a real guarantee, accord and satisfaction, or any other means.

The expectation is that the innovations brought in by the law will represent a transformation in the agricultural scenario, stimulate advances, attract investments (including foreign investments), and modernize the industry. Some industries, however, have provided criticisms of the text, including due to its breadth.