Producer affected by drought in Minas Gerais may renegotiate debts

The State Secretariat for Agriculture, Livestock and Supply (Seapa) announced, after a meeting with Banco do Brasil, that the financial institution confirmed that farmers affected by the severe drought in the state will be able to review their debts under exclusive conditions. 

The Agribusiness Manager for Minas Gerais at Banco do Brasil, Bruno Machado, stated that the bank will renegotiate financing contracts and installments that are due this year. He added that, even with the renegotiation, farmers will continue to have access to credit lines, whether they are small, medium or large producers. To find out how to access the conditions, producers should visit a Banco do Brasil branch. 

Minas Gerais is currently the bank's largest agricultural portfolio, with R$52 billion invested in the state, compared to a total of R$330 billion across Brazil, according to Bruno Machado. Secretary Thales Fernandes emphasizes that it is essential to support producers in the face of adverse weather conditions. 

“This partnership shows the strength of Minas Gerais’ agriculture sector and the importance of financing lines to boost our agriculture and livestock sector, so that it continues to generate income, jobs and leverage Minas Gerais. These are opportunities for rural producers to stay in business and become increasingly stronger,” he analyzed.

Crop guarantee

The resources from the Garantia-Safra Program are another possibility for those affected by the drought. This year, the Government of Minas Gerais transferred approximately R$5,7 million to the Garantia-Safra Fund 2023/2024, approximately 12% more than the transfer made in the previous harvest. The increase in the contribution increased the number of farmers benefiting by 11%, reaching approximately 40 thousand.

The annual benefit of R$1,2 is paid to farmers in municipalities that prove losses of 50% or more of crops covered by the program due to droughts or excessive rainfall. The program is intended for residents in the region where the Superintendence for the Development of the Northeast (Sudene) operates.

Prevention and mitigation actions

In addition to financial resources, farmers are adapting to the drought with support from the Minas Gerais Technical Assistance and Rural Extension Company (Emater-MG). 

Rural extension workers teach techniques to retain water in the soil, such as the use of cover crops to improve water infiltration and the use of straw, which is left over after cutting these plants, to protect and help reduce soil temperature.

Other soil and water conservation practices available to farmers include building small dams to capture water, terracing (also known as 'contour lines'), and investing in fencing off springs and restoring riparian forests in rivers and streams.