Brazil expands agribusiness financing plan

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(MENAFN-Brazil-Arab News Agency (ANBA))

São Paulo – This Wednesday (29), the Brazilian Federal Government launched the 2022/2023 Agribusiness Financing Plan ( Map of Safra ), which will provide a total of BRL 340.8 billion (about USD 65 billion at the current rate) of credit to support agribusiness production until June next year. According to the Ministry of Agriculture, the amount represents a 36% increase over the previous year, when BRL 251 billion (about USD 47.9 billion) was made available to rural producers.

The new plan was announced in a ceremony at the Palácio do Planalto, seat of the national executive power, in the presence of President Jair Bolsonaro, Agriculture Minister Marcos Montes and other authorities. Of the total resources made available, BRL 246.28 billion (approximately USD 47 billion) will be allocated to financing and marketing, a 39% increase over the previous year. An additional BRL 94.6 billion (approximately USD 18 billion) will be spent on investments, representing a growth of 29%.

Resources controlled interest the rates will total BRL 195.7 billion (approximately USD 37.3 billion) and, with open interest, BRL 145.18 billion (approximately USD 27.7 billion). The amount of equalized resources, part of the interest not charged to the borrower, increased by 31%, reaching BRL 115.8 billion (about $22.1 billion) in the next harvest, according to the government.

The new agribusiness financing plan has also expanded, from 50% to 70%, the possibility of using resources from agribusiness letters of credit (LCA). LCA is a fixed income security issued by banks to finance agro-industrial activities. According to the government, the measure is expected to generate a larger share of private agricultural finance with the expansion of securities such as CPR, CDCA, CRA and LCA.

Pronaf & Pronamp

Resources for small rural producers through the National Family Farming Strengthening Program (Pronaf), increased by 36%, totaling 53.61 billion BRL (about 10.23 billion USD), with an interest rate of 5% per year (for food production and socio-biodiversity products) and 6% per year (for other products).

For medium-sized producers under the National Support Program for Medium Rural Producers (Pronamp), BRL 43.75 billion (approximately USD 8.35 billion) will be made available, a 28% increase from the previous harvest, with interest 8% per year.

Translated by Elúsio Brasileiro

©Silvio Avila/AFP

The post Brazil expands its agribusiness financing plan appeared first on Agência de Notícias Brasil-Árabe.

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