Farsul held a meeting to discuss the impacts of the drought

The consequences of the drought on the economy of the state of Rio Grande do Sul and the measures necessary to mitigate these impacts were discussed this Thursday afternoon (24/02) at Farsul headquarters. The meeting, which had a hybrid format, was attended by the Governor of Rio Grande do Sul, Eduardo Leite, federal and state parliamentarians, mayors, presidents of rural unions and representatives of entities representing the sector.

The president of Sistema Farsul, Gedeão Pereira, opened the meeting lamenting the current scenario after a successful previous harvest. "Last year we reached the position of second food producing state, this year we should fall to fourth", he assessed. "We have to negotiate to reduce losses and we will still have a reduced Harvest Plan. Furthermore, costs have increased by 50% and now Russia invades Ukraine, which could impact fertilizer prices", he added.

Gedeão considers that the winter harvest may be favored by forecasts of a continuation of the La Niña climate phenomenon until the end of the year. Furthermore, the emergence of a conflict in Eastern Europe could impact the price of wheat. "However, we have to find a way for the farmer to remain viable," he said.

The Chief Economist of Farsul, Antônio da Luz, presented a survey carried out by the Federation on the impact of the drought on the economy of Rio Grande do Sul. "This shock is reverberating throughout the economy. Of the 67 sectors that form it, 63 are directly affected. The loss is equivalent to 4,31 times Fecoagro's storage capacity. In total, it will be R$ 115,7 billion less, a drop of 8% of GDP", he explained.

The CNA has been working to find solutions for states affected by drought or excessive rainfall, as explained by the Confederation's Technical Director, Bruno Lucchi. The Confederation estimates that between R$2,9 billion and R$3 billion will be needed for the Safra Plan. The challenge is in obtaining these resources. According to Lucchi, there are two main actions currently being worked on by the CNA. The first is the awareness of the general rapporteur of the 2022 Budget, deputy Hugo Leal, and the president of the Chamber of Deputies, Arthur Lira for the recomposition of the rural credit budget. The other is a Provisional Measure for supplementary credit that does not exceed the spending ceiling.

The Secretary of Agricultural Policy at the Ministry of Agriculture, Livestock and Supply (Mapa), Guilherme Bastos Filho, commented that the current work is being able to reallocate values ​​from other ministries to guarantee resources that cover renegotiations and make credit viable for the next harvest.

Governor Eduardo Leite regretted the situation. He recognized the efforts made by Mapa with the Ministry of Economy to reduce producers' losses. "That's what we want, survival for the next harvest", he guaranteed. Leite, touched on a point that has been heavily worked on by Farsul, which is the reservation of water on properties through a structured plan. "Nobody wants to grow at the expense of environmental degradation. But the refusal to reserve water for food production cannot happen", he highlighted.