June 20, 2013

License Plates and Insurance Required for Ag Equipment in Brazil

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

After three years of discussions, new rules are now set to take effect in Brazil that requires all tractors or agricultural equipment that travels Brazilian highways to have license plates and carry mandatory insurance. Farmers in Brazil are very upset about these new regulations that they feel only increases their costs and requires additional paperwork with very few benefits. They point to the fact that the equipment is in the field 98% of the time and is only briefly on the highway, so why should they pay the same cost as a passenger vehicle that only travels on the highways.

In the state of Parana for example, the yearly renewal for the license plant will cost at least R$ 265 and the required mandatory insurance is another R$ 60. That cost will go even higher in January of 2014 when all newly manufactured equipment will be registered with the state by the manufacturer before it leaves the factory. That registration will cost R$ 154 and the license plate will cost R$ 265 in addition to the mandatory insurance which will increase to R$ 110. If a driver is stopped and he doesn't have the proper license plate on his farm equipment, the fine is R$ 191 and he will lose seven points from his driver license.