Interest on the 2017/18 Harvest Plan was high, says president of Abramilho

“The Federal Government works with the perspective that by the end of 2017 inflation will fall and, therefore, Selic interest rates will be in the range of 6%, if this scenario is confirmed, we will be paying a lot to produce the food that the Brazilian population needs, since financing for the agricultural sector was established by the new Safra Plan, launched today, in Brasília, by President Temer and Minister Blairo Maggi, at 7,5 and 8,5%", said today the president of the Brazilian Association of Corn Producers, Abramilho, the former minister of agriculture Alysson Paolinelli. “For this reason, we continue, we will need to return to the negotiation table to improve these conditions so as not to jeopardize the producer's income nor the growth of the sector , at risk", he highlights.

Paolinelli explains that planting of various crops will begin in August and end around November. With the possible decline in the Selic rate, each month planting will have a price per hectare, leaving the producer's accounts quite confusing. He understands that this contingency was due to the Federal Government's spending control PEC, but believes that there are resources and scope to improve the conditions that were offered in the plan that was launched. “See, even though we have production records, in corn for example, we can reach 100 million tons, the producer is not doing as well as it seems", he points out, remembering that, for example, in 2016, there was a drop in production in several regions , affecting the cash flow of thousands of corn farmers. “Although the second harvest recovers the producer's income a little, as it has lower costs, the situation is not easy in the field and, with these proposed interest rates, the squeeze will continue", he states .

Rural Insurance – Defender of another model of rural insurance, where resources are between the Federal Government and the private sector, Paolinelli thought that the amount released for this harvest, R$550 million, was good for the current insurance model. “Now, for the model we are proposing, it is not at all sufficient,” he concludes.