Law 302 of 1996 – Creation of the Agricultural Solidarity Fund (FONSA)

Law 302 of 1996 creates the Agricultural Solidarity Fund (FONSA), a fund designed to provide economic support to agricultural, forestry, aquaculture and fisheries producers affected by crisis situations. FONSA may intervene in response to extreme climatic events or natural disasters, phytosanitary problems or pests, public-order disturbances, and severe and sustained declines in producers' income. Its mechanisms include debt portfolio purchases, modification of financial conditions, financial-cost relief, land repurchases and enabling beneficiaries to regain access to credit. The Law has subsequently been amended to broaden its beneficiaries, intervention circumstances and operational mechanisms.