It’s official: CVM releases issuance of securities on the Stock Exchange

Now it’s official: the public offer for the distribution of Agribusiness Receivables Certificates (CRA) is open, involving farmers and cooperatives related to the Landless Rural Workers Movement (MST).

The name of the financial product is Finapop. The capture of family farming cooperatives in the financial market had been suspended by the Brazilian Securities and Exchange Commission (CVM) last month, but it has already been released, after clarification by those involved in the project of some technical points raised by the commission.

Thus, whoever wants to invest amounts starting at R$100 in financial bonds that have the unique and specific characteristic of reverting the entire amount raised to cooperatives that produce healthy food, without pesticides, with respect for the environment and on land and farms from the Agrarian Reform, just get advice from Terra Investimentos, a partner in the project, and follow the instructions.

Those responsible for the operation, Gaia Impacto, issuer of the bonds, and Terra Investimentos, the lead coordinator, provided the information requested by CVM, clarifying that these are cooperatives with family farm owners and that the properties where they operate are located in settlements of Agrarian Reform.

The financial entities involved explained to the public authority that, although the cooperatives that will receive the resources invested in Finapop – with due guarantees of financial return to the investor (read more below) – they won the right to the land on which they now plant thanks to a struggle of thousands of landless workers, under the coordination of the MST.

Despite this, currently, such cooperatives and the legal obligations they assume do not have legal relationships with the social movement, as explained to CVM:

“Part of these families, which constitute and provide services to cooperatives, identify with the Landless Rural Workers Movement (…) However, although some of these families get involved and identify with the principles and ideology of the MST, as well as their activities described above, it is not possible to point out any formal association or economic and legal link of the cooperatives, which are the debtors of this Issue, with the Movement”.

Family farming produces a significant portion of the Brazilian basic food basket, accounting, for example, for more than half of the country’s rice supply. Small farmers also produce organic food, without the use of pesticides.

So, earlier this week, after all doubts had been resolved, CVM made official the reopening of fundraising for Finapop. Anyone who has more than R$ 100 and wants to invest it to finance family farming and receive back the amounts duly paid years later, can already do so. See below some of the characteristics of the investment.

Financial return and involved producers

Gaia Investimentos / finapop

The amounts invested and which later return with remuneration to their owner are free from taxation. In other words, the interest of 5.5% per year is net, not gross, thus making Finapop one of the most advantageous options in the financial market for small investors.

According to economist Eduardo Moreira – who helped structure Finapop and is himself one of its investors -, in addition to the advantages from an economic point of view for investors who have resources that were not sufficient to enter the financial market before, what Finapop brings revolutionary is the possibility of directly capitalizing on a type of producer that has always had to compete with agribusiness giants, but never under the same conditions, the family farmer:

“When you invest in Finapop, you know where the money goes: they are family farmer cooperatives in Paraná, Rio Grande do Sul and some other states. They are small cooperative producers to produce corn, milk, dairy products, all aimed at the Brazilian table – and not international commodity markets, cultivated in highly mechanized agriculture and with the use of pesticides and pesticides”.

It is the rural food-producing family who benefits from Finapop and which ends up benefiting the investor back

See, in the table below, the profile of Brazilian family farming, target of investments that will be raised by Finapop.

A table with the characteristics of family farming in the country / finapop

Edition: Vinícius Segalla

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