Agribusinesses will receive R$546,6 billion in investments by 2029

The federal government presented this week the investments that are being made to boost sustainable and digital agro-industrial chains by 2029. The resources total R$546,6 billion, of which R$296,3 billion comes from the private sector and R$250,2 billion in public credit lines.

During a ceremony at the Planalto Palace, President Luiz Inácio Lula da Silva signed a decree creating the National Program for Research and Innovation for Family Farming and Agroecology (PNPIAF). The goal is to promote research and innovation actions focused on family farming, with an emphasis on agroecological transition, in the territories, on the preservation of biomes and on the sustainability of agroecosystems.

“The push is towards a more innovative industry, then a greener industry, a more sustainable industry,” said Vice President and Minister of Development, Industry, Commerce and Services Geraldo Alckmin, about the various acts announced.

The projects are linked to Mission 1 of the New Industry Brazil (NIB). Launched in January of this year, NIB is an industrial policy with six missions related to expanding autonomy, ecological transition and modernizing the industrial park. The program focuses on the sectors of agribusiness, health, urban infrastructure, information technology, bioeconomy and defense and aims to boost national development until 2033 with instruments such as subsidies, low-interest loans and increased investment.

Of the public resources for Mission 1, R$198,1 billion have already been allocated in 2023 and 2024 and R$52,18 billion are available until 2026. The private sector amounts must be invested until 2029, involving 10 agro-industrial organizations and associations.

The mission's priorities include the dissemination of precision agriculture, encouraging domestic production of drones, and strengthening the fertilizer and biofertilizer production chain to reduce Brazil's dependence on these imported inputs. In addition, the government wants to strengthen domestic production of agricultural machinery and its parts and components.

More credit

The news announced today is that Banco do Brasil will now be part of the Plano Mais Produção (P+P) as the new financing arm of NIB, with R$101 billion. With this, resources for industrial policy reach R$507 billion in credit lines.

In addition to Banco do Brasil, the Mais Produção Plan provides resources through the National Bank for Economic and Social Development (R$259 billion), Caixa (R$63 billion), Finep – a public company linked to the Ministry of Science, Technology and Innovation (R$51,6 billion), Banco do Nordeste (R$16,7 billion), Banco da Amazônia (R$14,4 billion) and Embrapii (R$1 billion).

During the event, the Ministry of Agriculture and Livestock and Petrobras signed an agreement to strengthen the production and development of fertilizers and inputs for plant nutrition. The agreement provides for the expansion and modernization of factories for the national production of fertilizers; training of professionals; development of advanced technologies; improvement of infrastructure and logistics; technology transfer; in addition to sustainable rural development.

Banco do Nordeste (BNB) has also signed a contract with Inpasa to finance a new corn and sorghum ethanol plant in Maranhão. With R$600 million in financing from BNB, the project will have a total investment of R$1,3 billion, including private resources.

In addition, Finep signed two contracts, worth R$250 million each, for the development of innovative products for the agricultural sector. The first of these was with the company Ouro Fino Saúde Animal for the development of the world's first single-dose vaccine against Glässer's disease for swine.

Finep's other agreement was with Lar Cooperativa Agroindustrial and foresees the development of solutions linked to food and supplies for poultry, seeking to automate processes and use new technologies.

Main Targets

One of the goals of Mission 1 of the NIB policy is to increase the growth of GDP Income from Agroindustry (production of wealth through optimum income) to 3% per year, in 2026, and 6% per year, in 2033. In 2023, the GDP Income from agroindustry in 2023 was R$ 761 billion and the average growth from 2019 to 2023 was 1,75%.

Another objective is to increase the mechanization of family farming to 28% in 2026 and 35% in 2033. According to the Agricultural Census of the Brazilian Institute of Geography and Statistics (IBGE), in 2023, the mechanization rate of family farming reached 25%.

The third goal is to increase the level of technicalization of family farming to 43% by 2026 and 66% by 2033. Technicalization is the use of agricultural equipment and technologies that go beyond mechanization. Currently, only 35% of establishments are technically advanced.

Attraction of investments

During the event, Alckmin presented a summary of the private investments already announced under the NIB, totaling R$1,831 trillion. R$1,06 trillion was earmarked for the urban infrastructure sector; R$100,7 billion for Information and Communication Technology (ICT); R$130 billion for the automotive sector; and R$296,3 billion for agribusiness. R$100 billion was also earmarked for the steel sector, R$105 billion for the pulp and paper sector, and R$39,5 billion for health.