​BB announces measures to support apple sales

Banco do Brasil announces resources to support apple sales, through credit for storage (FEE - rural producers) or acquisition (FGPP - agro-industries).

The term is 180 days and rates range from 9% to 12,75% per year. The solution is already in force and the bank's branches are able to receive proposals.

Support for rice producers in RS and SC

Banco do Brasil also took measures to support rice producers in RS and SC. According to the institution, the objective is to support customers in selling the product under better market conditions.

The bank decided to extend the payment of installments of rice costs for the 2016/17 harvest, scheduled for July and August. With the measure, commitments due in these months are transferred to September and October. The construction of the measures included the collaboration of entities representing the sector and the Ministry of Agriculture, Livestock and Supply.

To adhere to the new schedule, producers must present documentation representing the product deposited in the warehouse before the first installment of the debt is due.

The new developments for the commercialization of apples and for the benefit of rice producers are already in force and BB agencies are ready to receive proposals.

Livestock support measures

Last week, the Bank began offering livestock farmers the possibility of extending, for one year, funding and investment operations maturing between July and December 2017.

The measure, in force in the second quarter, covered operations maturing between March and June, when R$1,5 billion was extended by the bank's customers. According to BB estimates, around 300 thousand operations mature in the 2nd semester and can also count on the benefit.

According to BB's agribusiness director, Marco Túlio Moraes da Costa, “The bank's objective is to support rural producers who may have difficulty selling their production, due to the momentary devaluation of the price of arroba and due to weather difficulties in some areas. regions of the country”, he highlights.

According to a survey by the institution, the North, Northeast, Central-West regions and the state of Minas Gerais were most affected by the price of products and also by bad weather. Therefore, in these areas the extension can be 100% of the outstanding balance.

For other states in the Southeast region, customers need to pay off 20% of the amount due and can extend the remaining 80% for up to one year.

Although the South of the country does not have such a large impact on the drop in prices, BB's initiative also covers the states in the region. There, the extension is limited to 50% of the current balance of livestock costs and investment.

It should be noted that the extension is not automatic. Interested parties must go to BB branches where they have a relationship to sign the deadline extension request.

Credit lines offer R$1 billion to livestock farmers

In addition to the extension, Banco do Brasil has two lines of credit for the livestock sector. Available since the end of March, one of the lines is aimed at retaining calves, dams and bulls, allowing producers to wait for market prices to return for sale.

The other initiative is an alternative financing, with the Bank's own resources, involving the acquisition of cattle for breeding and fattening.

The solutions have a term of up to two years and use resources raised from LCA. Rates vary between 9,9% and 12,75% p.a.

The largest financial agent in Brazilian agribusiness, Banco do Brasil accounts for around 60% of the credit market for the sector. According to the institution's balance sheet, the rural credit portfolio reached R$180 billion in March, with R$31 billion allocated to livestock farming.