Brazil to release $4 billion in farm credit

Brazil to release $4 billion in farm credit

Chamber Articles Category: Agribusiness Post Date: 02/01/18 Source: AgriCensus By: Reese Ewing
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Brazilian President Michel Temer has announced the government-controlled bank Banco do Brasil will release 12 billion reais ($4 billion) in subsidized credit to farmers for the planting, upkeep, harvest, transport, storage and sale of crops.

Brazil’s yearly output of soybeans and corn accounts for roughly 95% of the country’s total grain production by tonnage, and most of the credit will go to commercial farmers of these crops.

The country’s 190 billion real ($60 billion) farm bill for the 2017/18 (July-June) season was announced in July of 2017, but the government has been facing a fiscal crisis and often holds back the disbursement of some government spending earmarked for various sectors when it is tightening its fiscal purse-strings.

“We are allocating 12 billion reais in credit to farmers with more accessible interest rates,” Temer said to a room of four hundred farmers and leaders in the agricultural sector this week, adding that it “wasn’t without reason that we increased our agricultural exports by 17%” in 2017.

Brazil produced a record 240 million tonnes of grain, predominantly soybeans and corn in the previous 2016/17 season and Temer said the country was on its way to pulling off another bumper crop this year. Read Full Article