Peru: Promotion of the Organization of Agricultural Producers and the Consolidation of Rural Property for Agricultural Credit (Legislative Decree No. 1020)

Legislative Decree No. 1020 establishes the legal framework to promote the organization of agricultural producers and the consolidation of rural property, with the aim of expanding access to agricultural credit, enhancing competitiveness, and supporting the modernization and conversion of the agricultural sector. The decree recognizes that improving rural incomes requires access to technology and machinery on adequate land areas, and that associative organization among farmers is essential for facilitating financing and productive rural development. The decree defines several key concepts. An Agricultural Associative Entity is an organization made up of at least two agricultural producers who engage in farming or livestock activities over a total of 20 hectares or more, either collectively or individually. An Agricultural Producer is defined as a natural person whose main economic activity is agriculture or livestock, including those involved in primary processing of agricultural products. A Small Agricultural Producer is one whose gross annual income does not exceed the limit set by the regulation. A Sustainable Productive Unit refers to agricultural land used for farming or livestock purposes, with a minimum area of 20 hectares.