Agricultural sector reacts to suspension of credit in the Safra Plan

The Brazilian Agribusiness Association (Abag) expressed concern about the suspension of new rural financing contracts with federal subsidies within the lines of the 2024/2025 Harvest Plan. The measure, which came into effect this Friday (21/2), generates uncertainty for the agricultural sector, which represents around 22% of the national economy and had a GDP of over R$2,58 trillion in 2024.

According to ABAG, the credit freeze impacts the entire production chain, including industry, technology and logistics, affecting the dynamism of agribusiness. In addition, the reduction in the supply of financing can compromise productivity in the field and put pressure on food prices, harming both producers and consumers.

The entity highlights that the lack of subsidized resources can affect small, medium and large farmers, hindering essential investments in technological innovation, equipment modernization and logistics infrastructure. Among the consequences is the possibility of a reduction in job creation and an increase in production costs, with direct repercussions on the economy.

Given this scenario, ABAG advocates the need for an open dialogue with the Federal Government to seek solutions that guarantee predictability for the sector. The entity hopes that the Ministries of Agriculture and Finance will find alternatives to reverse the decision and ensure the continuity of the Safra Plan, which is essential to maintain the competitiveness and sustainability of Brazilian agribusiness.

The association reinforces its commitment to monitoring developments on the issue and working with the competent bodies to ensure solutions that enable the sustainable development of the sector and food security for the population.