Procampo Capitalization Act

Original Language Title: Ley de Capitalización del PROCAMPO

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Law of Capitalisation of the Procampo

PROFIELD CAPITALIZATION LAW

Official Journal of the Federation December 31, 2001

On the sidelines a seal with the National Shield, which reads: United Mexican States.-Presidency of the Republic.

VICENTE FOX QUESADA, President of the United Mexican States, to its inhabitants known:

That the Honorable Congress of the Union, has served to address the following

DECREE

"THE CONGRESS OF THE MEXICAN UNITED STATES, DECREES:

PROFIELD CAPITALIZATION LAW

TITLE FIRST

THE ACT OBJECT

ONLY CHAPTER

Article 1o. This Law of Capitalization of the PROCAMPO is issued in the framework of Articles 25, 27, XX and other corresponding devices of the Political Constitution of the United Mexican States, the Sustainable Rural Development Law, and other applicable provisions.

This law is of general application and will govern throughout the territory of the United Mexican States; its provisions are of public order and general interest. It aims to establish the provisions for the advance access and the use as a credit guarantee, of the future payments to which the beneficiaries of the Program of Direct Support to the Field are entitled, hereinafter "PROCAMPO", when so suits their interests in accordance with the provisions of the Sustainable Rural Development Act and other applicable laws.

Article 2o. By this Law, the System of Guarantees and Advance Access to Future Payments of the PROCAMPO, hereinafter "The System", is established as a mechanism for stimulate the capitalization of the beneficiaries of the program, based on the proposals of the beneficiaries of the PROCAMPO and the criteria of prioritization that the federative entities and the municipalities establish.

Article 3o. The System, will pursue the following purposes:

I.      Enable beneficiaries to access the resources provided for in the remaining years of the PROCAMPO in advance, to capitalize on their production units and to develop their projects and modernization actions;

II.     Provide the producers with certainty that they will receive the support to implement the productive projects that will allow for greater bargaining capacity in the face of the market commitments, as well as to take advantage of the opportunities derived from international agreements and treaties on the subject; and

III.    Provide conditions for availability and access to credit resources.

Article 4. The Secretariat of Agriculture, Livestock, Rural Development, Fisheries and Food, hereinafter "The Secretariat", will be responsible for implementing the provisions of this order, for which it shall establish the necessary coordination agreements with other agencies and entities of the Federal Public Administration, the governments of the states, the Federal District and the municipalities.

For all purpose, the Secretariat will take into account the provisions contained in the Law on Sustainable Rural Development, as soon as possible. to the planning, organization, execution and evaluation procedures, including the participation of the National Council, the State, District and Municipal for Sustainable Rural Development and the Sistema-Product Committees, following criteria for federalisation and decentralisation.

Article 5o. All producers registered on the register of the PROCAMPO who comply with their operating rules and in accordance with the availability of System resources, without distinction of those who are in a maturities or other restrictive credit history.

Priority will be given to the beneficiaries of the PROCAMPO: of lower income; that they are properly associated and organized; those who have 5 hectares or less; and the women; and indigenous groups.

The beneficiaries of the PROCAMPO will be able to obtain, at the same time, resources from other programs, prior to compliance with the regulations that will have the effect federal, state, or municipal that correspond.

Article 6o. The Secretariat will establish mechanisms to fully inform the beneficiaries of the PROCAMPO on the modalities and rules of operation of the System.

Article 7o. The implementation of this Law will invariably follow the priorities, guidelines and provisions laid down by the Rural Development Law. Sustainable in terms of equity between regions and disadvantaged groups, as well as the conservation and improvement of natural resources and environmental services.

TITLE SECOND

OF THE GUARANTEE SYSTEM AND ADVANCE ACCESS TO FUTURE PAYMENTS FROM THE PROFIELD

ONLY CHAPTER

Article 8o. Access to the System will invariably be through a productive project that must be directly related to the primary production, the agro-industrialization and the supply of inputs and equipment necessary for the realization or development of the respective project or other economic activities linked to the agricultural, forestry and fishing production chains. Priority will be given to projects that contribute to food security and sovereignty; to optimization in the use and use of water; conservation and improvement of natural resources and environmental services; employment; increasing the capacity of producers to achieve economies of scale and capacity for negotiation and the integration of productive chains and value aggregation into the products of the field.

The Secretariat, with the participation of the Mexican Council for Sustainable Rural Development supported by the State, District and Municipal Councils for Development Rural Sustainable, will establish a procedure of qualification, selection and evaluation of projects, which will reflect the priorities and orientations established in this Law, the Law of Sustainable Rural Development and other ordinances applicable. This procedure will be widely disseminated among the beneficiaries of the PROCAMPO.

Article 9o. To achieve the best effect of the System, governments in their different orders, as well as individuals, individually or organizately, will be able to to establish the relevant agreements for the participation in the development of the projects. Such agreements shall be laid down in the respective conventions.

Article 10. The Secretariat will design and implement the mechanisms to facilitate access to the different types of beneficiaries of the PROCAMPO to the System and the support in the field of organization and training, identification and consultation of investment ideas, formulation and evaluation of projects, continuous technical assistance, as well as access to markets, among others, for which the the material and human resources of the competent institutions.

Article 11. The Secretariat, through the competent body, will permanently update the Pron of beneficiaries of the PROCAMPO and reallocate the available resources in their budget, taking into account, producers who prove that they have been unjustifiably excluded from the register and to those who prove that they were eligible at the time of the establishment of the PROCAMPO standard. For the reallocation, the producers will be preferred for a predium of 5 hectares or less, as well as for those whose property is located in the municipal district where the register is updated.

Article 12. The head of the Federal Executive, in sending to the Congress of the Union the Income Law Initiative of the Federation and the draft Decree of the Budget of the Federation, for each of the fiscal years in which the present order is in force, will establish the budgetary forecasts that are required to comply with the provisions of this Law.

Article 13. The Chamber of Deputies, during the term of this Law, will provide in the corresponding decrees of the Federation's Budget of Eps, budget items and availabilities for the PROCAMPO.

These items will have a constant real value, for which they will be adjusted in each budget year, according to the variation of the National Price Index. Consumer. The difference resulting from increases resulting from these adjustments, once discounted the financial costs generated by access to the System will be paid in favour of the beneficiaries.

Article 14. For the purposes of this Law, each and every one of the provisions of the Decree of creation of the PROCAMPO, published in the Official Journal of the Federation of July 25, 1994, as well as its corresponding modifications and adjustments, in which it does not object to this Law. Direct support to the rural producers referred to in this Decree will be granted to improve the living conditions of the rural population and to respond to the imbalances of the international market, with the conditions and for the purposes of which establishes the Sustainable Rural Development Act in its seventh and other applicable articles.

As long as unfavourable conditions of competition persist in the international market, producers will continue to provide direct support to producers. Executive, in accordance with the provisions of the Sustainable Rural Development Act.

Article 15. By this Law, producers will be supported through productive projects that are financially and technically viable, for which the Secretariat will provide information on the technical options to improve the used production processes and on other activities that present better market and productive conditions, allowing them to make the decisions that are agreed their interests.

Article 16. The producer who wishes to join the System, to be in an ability to have the resources of the System in advance or to use them as collateral credit, you must meet the following requirements:

I.      Be enrolled in the Padron of the PROCAMPO;

II.     Be the holder of the beneficiary of the PROCAMPO;

III.    Submit a request to use the System, pointing out the agricultural cycles for which it is required, which will be qualified for your project;

IV.    Annex, in the terms of Articles 8 and 19 of this Law, the project or projects that they intend to carry out with such support, committing to execute them; and

V.      Present, in the case of natural persons, a copy of the credential to vote issued by the Federal Electoral Institute or the Single Key of Population Registration (CURP) or other official identification with photography and signature or fingerprint; for Moral persons, copies of their Tax Identification Code through their duly accredited representative.

Article 17. Other beneficiaries of the PROCAMPO who wish to remain in accordance with the corresponding Decree and its operating rules shall continue to receiving the support in accordance with the rules laid down in the same decree.

Article 18. The System will operate under the following guidelines:

I.      Certainty of its temporality by establishing in this Law the validity of the System and the possibility of requesting in advance the resources foreseen in it;

II.     Accuracy as to its generalised or differentiated nature by type of producer, geographical location and socio-economic level of the beneficiary;

III.    Transparency through the dissemination of the rules for their access and the publication of the amounts and the type of support per beneficiary;

IV.    Producers ' responsibility for the use of the support; and

V.      Possibility to evaluate them to measure their efficiency and administration, as established in the projects and in the rules foreseen.

Article 19. System resources may be used as a source of payment for the investment required by the projects to be developed by the beneficiaries; credit guarantee or to constitute and strengthen the economic organizations of the producers, oriented to finance productive agricultural, forestry and fishing projects.

THIRD TITLE

LAW ENFORCEMENT

ONLY CHAPTER

Article 20. The Secretariat, subject to the provisions laid down in this Law, shall issue operational regulations for access to the resources to which it is refers to the same. Regulations which will make it known to the Congress of the Union to issue its observations; at the same time it will apply and interpret for administrative purposes the provisions of this order. In the same way, it will determine the monitoring and control mechanisms for the resources to be granted and verify its correct application in the approved projects, while establishing the penalties for producers who incur deviations. or simulations or do not execute such projects within the prescribed time-limits.

The operating rules will specify the economic and financial conditions to which the System will be subject, the annualized cost and the total cost to the system. producer. In addition, for the implementation of the System, the provisions will be defined so that the ministries in the access to the resources will be exercised in accordance with the needs foreseen in the corresponding projects and subject to the progress in their implementation.

Article 21. The Secretariat will define, within the Intersecretarial Commission, contemplated in the Sustainable Rural Development Law, with the participation of the Mexican Council for Sustainable Rural Development, the mechanisms to determine the maximum credit rates to be applied for the duration of the support programs and to reduce the financial costs resulting from the application to the producers of the System, emphasizing the Development Banking and giving preference to the Social Banking to operate it. Financial institutions shall omit the concept of risk in the collection of interest. Producers with 5 hectares or less will not pay financial costs for participating in the System.

Article 22. The Secretariat will resolve the inconformities presented by the producers in the application of this Law, with the participation of the Mexican Council for Sustainable Rural Development.

TRANSIENT

First.- This Law will take effect the day after its publication in the Official Journal of the Federation.

Second.- The Secretariat will send to the Congress of the Union the calculation memory and the projections corresponding to the exercise of the System ninety days after the publication of this Law and, on an annual basis, on 30 November the progress report of the financial year and the projections for the following fiscal year.

Third.- The System will be effective until December 31, 2008.

Fourth.- The Federal Executive Branch through the Secretariat of Finance and Public Credit, in coordination with the Secretariat of Agriculture, Livestock, Development Rural, Fishing and Food, at the entry into force of this Law, will promote the actions of promotion to the capitalization to which it refers, as well as the implementation of the financial mechanisms that are required for the fulfillment of its provisions.

Mexico, D.F., at December 15, 2001.-Dip. Beatriz Elena Paredes Rangel, President. -Sen. Diego Fernandez de Cevallos Ramos, President.-Dip. Adrian Rivera Perez, Secretary.-Sen. Maria Lucero Saldana Perez, Secretary.-Rubicas".

In compliance with the provisions of Article 89 of the Political Constitution of the United Mexican States, and for their due publication and observance, I request this Decree in the Federal Executive Branch, in Mexico City, Federal District, at the twenty-eight days of December of two thousand one.- Vicente Fox Quesada.-Rubrias.-The Secretary of the Interior, Santiago Creel Miranda.-Heading.