Rural Product Ballot

  • The product

    Allows farmers or cooperatives to raise funds for production or projects with or without reserved sales.

    Promise of future delivery of rural products (Product CPR). With this instrument, its issuers — farmers, their associations and cooperatives — receive spot payment for their goods.

    CPRs have been used as a financing instrument, allowing sale of crops without contracting loans referenced to interest rates and the reduction of seasonal pressures on commodities prices.

    It is a tradable foreign exchange bond both for OTC market and stock exchange, in the following modalities:

    Physical CPR

    Generates an obligation on the maturity date for the established quantity and quality of product.

    Financial CPR

    Generates an obligation on the maturity date based on the multiplication of the established price by the amount of the respective product. Allows for financial settlement (delivery of funds instead of goods) as long as the contract explicitly establishes the price or price index, the institution responsible for its publication, the financial center or market and the index name.

    Before registration, this is a bearer bond, but as long as it is registered, it is book-entry or electronic. Financial CPR trades are exempt from IOF (Tax on Financial Transactions).