Release of R$ 3 billion to finance the harvest begins on Monday (190,25)

From Monday (3) onwards, Brazilian farmers will be able to count on resources to finance the next agricultural harvest. There are R$190,25 billion allocated by the federal government to funding, commercialization and investment operations, through the Agricultural and Livestock Plan 2017/2018. The expectation is that once again the agribusiness sector will contribute to boosting the country's economy, with a harvest that could exceed 240 million tons of grains.

“Even in a difficult scenario, the government reduced the interest rates on some credit lines to allow farmers to have harvests capable of guaranteeing Brazilian food security and exportable surpluses to generate foreign currency", highlights the Secretary of Agricultural Policy at the Ministry of Agriculture , Livestock and Supply, Neri Geller, adding that the scenario is very optimistic for the next agricultural season.

“Programs such as PCA (Warehouse Construction and Expansion Program), which reduced interest rates to 6,5% per year, will boost the resumption of investments in storage. This will help to alleviate or solve the logistics problem and will give our producers the conditions to continue making strong progress in increasing agricultural production in the country", emphasizes Geller.

The secretary believes that the producer will, once again, show firmness and willingness to strengthen agricultural activity. “And we, in the government, are doing our part to provide support both from the point of view of credit and the expansion of resources and the minimum price guarantee." According to him, support for the sector is fundamental because agribusiness represents almost half of exports and for around 21% of the country's GDP (Gross Domestic Product).

Of the amount announced on June 7th by President Michel Temer and Minister Blairo Maggi, during a ceremony at Palácio do Planalto, R$550 million are from the Rural Insurance Premium Subsidy Program (PSR) and R$1,4 billion for marketing support.

Interest

The 2017/2018 Agricultural and Livestock Plan reduced interest rates on funding and investment lines by one percentage point per year and, by two percentage points per year, on programs aimed at storage and technological innovation in agriculture.

In funding and investment credit, interest fell from 8,5% per year and 9,5% per year to 7,5% and 8,5%, with the exception of PCA and Inovagro, in which the rate was fixed at 6,5% per year.

Credit

The volume of credit for funding and commercialization is R$150,25 billion, of which R$116,25 billion bears controlled interest and R$34 billion bears free interest. The amount for investment jumped from R$34,05 billion to R$38,15 billion, an increase of 12%.

Discover: here the Agricultural and Livestock Plan 2017/2018

Discover: here the resolutions published at the Central Bank