IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 06 Aug 2014 | Removal date: 05 Jan 2016
Still in force

Production subsidy

On 6 August 2014, the government of Brazil stated that the maize harvest of 2014 is going to be subsidized with a total of USD 230 million (500 million real).
 
The stated amount will be distributed through the Brazilian farmerincome support program PEPRO. The program is based on theauction mechanism further described below. The subsidies will continueuntil the stated volume has been allocated completely .
 
The program constitutes a production subsidy to Brazilian farmers. Both domestic and international sales are eligible.
 
The design of the Brazilian farmer income support program PEPRO / Premium Paid to Growers (Premio Equalizador Pago aoProdutor) can be briefly summarized as follows:
The government first sets a minimum price for the eligibleproducts. The government then auctions off a premium to the producers. The selling price represents the difference between the reference priceand the premium reached at the auction. The farmer submitting thesmallest premium wins the right to receive the payment.
 
The GTA includes state guarantees and other financial incentives thatare likely to affect the restructuring and performance of firms facinginternational competition, whether from imports, in export markets, andfrom foreign subsidiaries.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

011 Cereals
1005 Maize (corn).
100590 Other

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