12 dezembro 2017
Encouraging more responsible practices in commodity production in Brazil
The financial sector is a key player in the accomplishment of Brazilian commitments related to sustainability. For WWF-Brasil, this sector is extremely relevant and is in line with the Food and Agriculture Program's financial strategy, which is to promote best practices in the sector and increase the volume of resources for financing agricultural production free of deforestation.
Agribusiness Receivables Certificates
(CRAs in Portuguese) are favourable towards investors, as they are based on the real economy and provide tax advantages for individual investors. They also represent an excellent alternative production and capital replacement financing solution for rural producers and other agents along the chain, especially considering the growing restrictions and limitations being put on resources and subsidies obtained through the official rural credit system.
WWF-Brasil sees in the Agribusiness Receivables Certificates an enormous potential to direct capital flows to the more responsible production of commodities in Brazil. In addition, it also functions as a mechanism to benefit producers who adopt best practices in agricultural production.
This publication proposes ways to promote the CRA as a tool to encourage and recognize more responsible agricultural practices by farmers and to mitigate exposure to socio-environmental risks to investors.