Legislative Decree No. 1020: Promotion of Agricultural Producer Organizations and Rural Land Consolidation for Agricultural Credit

Legislative Decree No. 1020 establishes the legal framework to promote agricultural producer organizations and rural land consolidation in order to expand access to agricultural credit and foster competitiveness, productive restructuring and modernization of Peru's agricultural sector. The decree regulates the establishment of agricultural associative entities composed of crop and livestock producers, establishes conditions for forming sustainable production units, and provides financing mechanisms related to producer organization and rural land ownership. It authorizes regional governments to establish trusts with financial institutions to guarantee loans granted to small agricultural producers and agricultural associative entities. It also provides mechanisms intended to facilitate the consolidation of production units and financing for agricultural technical assistance. Implementing regulations were approved through Supreme Decree No. 032-2008-AG. For PAESA purposes, its principal mechanisms are agricultural producer association, access to credit, financial guarantees and rural land consolidation. The decree does not establish a direct subsidy program, public procurement scheme, export promotion program or environmental incentive mechanism.