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ANNOUNCEMENT 07 Jun 2017
The Government of Brazil launched the 2017/2018 Agricultural and Livestock Plan allocating credits lines with lower interest rates than those set at the market to farmers. The total budget for the 2017/2018 Plan is circa USD 61 billion (BRL 200 billion). In comparison with the 2016/2017 plan, the total budget has increased by 24.3%.
NUMBER OF INTERVENTIONS
4
SOURCE
BrazilGovNews."Government launches 2017/2018 Agricultural and Livestock Plan" Available at http://www.brazilgovnews.gov.br/news/2017/06/government-launches-2017-2018-agricultural-and-livestock-plan-1
Ministry of Agriculture, Livestock and Farming. Ministério da Agricultura, Pecuária e Abastecimiento. "Plano Agrícola e Pecuário". Available at: http://www.agricultura.gov.br/assuntos/sustentabilidade/plano-agricola-e-pecuario/plano-agricola-e-pecuario-novo
Ministry of Agriculture, Livestock and Farming. Ministério da Agricultura, Pecuária e Abastecimiento. "PLANO AGRÍCOLA E PECUÁRIO 2017/2018. R$ 190,25 BILHÕES". Available at: http://www.agricultura.gov.br/assuntos/sustentabilidade/plano-agricola-e-pecuario/arquivos-pap/APRESENTACAOPAP.pdf
On June 7, 2017, the government of Brazil launched the 2017/2018 Agricultural and Livestock Plan of Brazil. Included in the program was an increase in the budget allocated to the PRONAMP credit lines. The new budget was set at USD 6.6 billion (BRL 21.7 billion) representing a 12% increase when compared to the budget provided in the 2016/2017 Agricultural and Livestock Plan. In addition, the interest rate has been decreased from 8.5% to 7.5%.
The credit lines offered through PRONAMP are divided into two categories: credits to finance costs and credits to finance investments. In this sense, USD 5.5 billion (BRL 18 billion) was allocated to costs and USD 1.13 (BRL 3.7 billion) was allocated to investments.
AFFECTED PRODUCTS
Furthermore, the government of Brazil also increased the budget for the Program Inovagro enclosed in the 2017/2018 Agricultural and Livestock Plan launched on June 7, 2017. The new budget was set at USD 384 million (BRL 1.26 billion) while the budget provided in the 2016/2017 Agricultural and Livestock Plan was USD 379.5 million (BRL 1,245 million). In addition, the minimum interest rate has been decreased from 8.5% to 6.5%. Beneficiaries can apply up to USD 335,328 (BRL 1.1 million) for a 10-year deadline to invest in new technologies to boost the productivity.
The government of Brazil also increased the budget for the Moderfrota credit lines. The new budget was set at USD 2.8 billion (BRL 9.2 billion) while the budget provided in the 2016/2017 Agricultural and Livestock Plan was USD 1.5 billion (BRL 5.05 billion). In addition, the minimum interest rate has been decreased from 8.5% to 7.5% while the maximum interest rate has been kept at 10.5%.
Beneficiaries can obtain credit lines of up to 90% of the total value of the agricultural machinery that is to be purchased, and the credits last for a maximum of 10 years.
The 2017/2018 Agricultural and Livestock Plan of Brazil launched by the government on June 7, 2017, also includes a decrease in the budget allocated to the Agricultural Carbon Reduction Program (i.e. ABC by its acronym in Portuguese). The new budget was set at USD 649 million (BRL 2,130 million) while the budget provided in the 2016/2017 Agricultural and Livestock Plan was USD 911.5 million (BRL 2,990 million). However, the interest rate has been decreased from 8.5% to 7.5%.
Beneficiaries can obtain credit lines to up to circa USD 671,000 (BRL 2.2 million).
Finally, the 2017/2018 Agricultural and Livestock Plan launched by the Brazilian government on June 7, 2017, also increased the budget for the interest payment subsidy applied to the Rural Insurance Program. The new budget was set at USD 289.6 million (BRL 950 million) while the budget provided in the 2016/2017 Agricultural and Livestock Plan was USD 207.6 million (BRL 680.9 million) which represents a 37.5% increase.