ANNOUNCEMENT 06 Jun 2018

The Government of Brazil launched the 2018/2019 Agricultural and Livestock Plan allocating credits lines to farmers with lower interest rates than those set at the market. The total budget for the 2018/2019 Plan is BRL 194.3 billion (circa USD 50.8 billion at the time the announcement was made). In comparison with the 2017/2018 plan, the total budget has decreased by 2.85%.

NUMBER OF INTERVENTIONS

10

  • 5 harmful
  • 1 neutral
  • 4 liberalising

SOURCE

Ministry of Agriculture, Livestock and Farming. Ministério da Agricultura, Pecuária e Abastecimiento. "Plano Agrícola e Pecuário 2018 - 2019". Available at: http://www.agricultura.gov.br/assuntos/sustentabilidade/plano-agricola-e-pecuario

Ministry of Agriculture, Livestock and Farming. Ministério da Agricultura, Pecuária e Abastecimiento. Plano Agrícola e Pecuário 2018/2019. Available at: http://www.agricultura.gov.br/assuntos/sustentabilidade/plano-agricola-e-pecuario/arquivos-pap/folder-pap-2018-2019

Planalto. "Agricultura: função do Plano Safra é apoiar o setor produtivo" Available at: http://www2.planalto.gov.br/agricultura-funcao-do-plano-safra-e-apoiar-o-setor-produtivo

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 Supply. Ministério da Agricultura, Pecuária e Abastecimiento. Notícias. "Investimentos do Plano Agrícola e Pecuário têm crédito adicional de R$ 791 milhões" Available at: http://www.agricultura.gov.br/noticias/investimentos-do-plano-agricola-e-pecuario-tem-credito-adicional-de-r-791-milhoes

National Bank for Economic and Social Development. Banco Nacional de Desenvolvimento Econômico e Social. Últimas Notícias. "BNDES retoma Moderfrota com R$ 536 milhões adicionais" Available at: https://www.bndes.gov.br/wps/portal/site/home/imprensa/noticias/conteudo/bndes-retoma-moderfrota-com-r536-milhoes-adicionais/!ut/p/z1/tZXbctowEIafpRe-FFpb8ql3DjGQYMq0CSH4hpFPWC22HFlA8_YVlJmkB5xkGHyj8Xr97f5r_TKO8SOOa7blK6a4qNla3y9iZxn543BEpxCBfU8huCYunbkhjD0Lzw8JcOIKAMen36cDwA84xnFaq0aVeJHUWd4ued0qrjbpoQMDSlHlBvCqkXndMgNqoXjKWWtAKmqVbzJhwOFFJHMlKoYqkeWykEIxlIoKSZs4qOLrUugUlvEDl7f7uk3KM7woiMmsxLaRlZg-otRJkO8TD1HGHMos4phOetTZISR-z5w6EuLuMc73_b4mTG9ICMGoH9k0HJtDnxwTuj7Fn4ThdWRBENkDGHz9MgwDCy90k-5pkSaeb3m-w7NayEpvjruXGboO-JBmGXJMCogCs5BvOxlyC8aopZ86aYJH8E-FuyuiK7g3djT0YWS5Z1boFvDgXBZvXxZ_7nBu3_KiNjv__vQUB9qRe2v9VPjxQ5bsVjD2yGkF7zJhN35qXRZvXxbvXhRP6Zn427dOuLN3z7kHum7AkpP-ZKV1MVUiXhfi2MIHSVrrai2S3_-_oE6Ip5kyL3KZy95G6nCpVNN-NsCA3W7XO9TorcS2l0gdabSURki1F9tylXcY5j_8UrR6cn9jcVPNKo88c_Tjm7e7L8pVtZyExD4u623VT_bxV8sz0dG51waffgGuvbDo/dz/d5/L2dBISEvZ0FBIS9nQSEh/

Inception date: 01 Jul 2018 | Removal date: 30 Jun 2019

State loan

On 6 June 2018, the government of Brazil launched the 2018/2019 Agricultural and Livestock Plan of Brazil. Included in the program was a decrease in the budget allocated to the PRONAMP credit lines. The new budget was set at BRL 18.5 billion (USD 4.8 billion) representing a 15% decrease when compared to the budget provided in the 2017/2018 Agricultural and Livestock Plan. However, the interest rate has been decreased from 7.5% to 6%.

The credit lines offered through PRONAMP are divided into two categories: credits to finance costs and credits to finance investments. These credits are limited to BRL 1.5 million per producer (USD 392,500 at the time the measure was announced).

Update
On 21 February 2019, the Ministry of Agriculture, Livestock and Supply of Brazil announced an increase in the budget allocated to the PRONAMP credit line for the 2018/2019 Agricultural and Livestock Plan. The new resources allocated to the program are BRL 26 million (circa USD 7 million at the time of the announcement). Despite the budgetary increase, the total resources allocated to the PRONAMP scheme for the 2018/2019 plan are still below the total amounts provided during the previous plan.

AFFECTED PRODUCTS

 
N/A
Inception date: 01 Jul 2018 | Removal date: 29 Apr 2019

State loan

In the 2018/2019 Agricultural and Livestock Plan, launched by the government of Brazil on 6 June 2018, the total budget allocated to MODEFROTA program was decreased from BRL 9.2 billion (USD 2.4 billion) to BRL 8.9 billion (USD 2.3 billion).

These credit lines managed by the BNDES are intended for financing the acquisition of tractors, harvesters, cutting platforms, sprayers, planters, seeders and equipment, both to rural producers and to cooperatives.

The new resources will be available for the period lasting between 1 July 2018 and 30 June 2019.

 
Update
On 29 April 2019, the BNDES has announced the allocation of an addition BRL 536 million (circa USD 136.2 million at the time of the announcement) to the Moderfrota credit line for the 2018/2019 budget (please, see related state acts).
Inception date: 01 Jul 2018 | Removal date: 30 Jun 2019

State loan

Likewise, the Brazilian 2018/2019 Agricultural and Livestock Plan announced on 6 June 2018, also decreased the budget allocated to the Agricultural Carbon Reduction Program (i.e. ABC by its acronym in Portuguese). The new budget was set at BRL 2 billion (USD 523.3 million) while the budget provided in the previous Plan was BRL 2.13 billion (USD 557.3 million). 

The ABC Program was created based on a voluntary commitment made by Brazil at the UN Conference on Climate Change Conference and aims at promoting environmentally sustainable crops. The Program's priorities are the recovery of degraded areas and pastures, control of commercial forestry and treatment of waste.

Update
On 21 February 2019, the Ministry of Agriculture, Livestock and Supply of Brazil announced an increase in the budget allocated to the ABC Program for the 2018/2019 Agricultural and Livestock Plan. The new resources allocated to the program are BRL 95 million (over USD 25 million at the time of the announcement). Despite the budgetary increase, the total resources allocated to the ABC scheme for the 2018/2019 plan are still below the total amounts provided during the previous plan.

 
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Inception date: 01 Jul 2018 | Removal date: 30 Jun 2019

State loan

Furthermore, the total budget allocated to Inovagro and included in the Brazilian 2018/2019 Agricultural and Livestock Plan launched on 6 June 2018, was also decreased. The new budget was set at BRL 1,150 million (circa 301 million) while the budget provided in the previous plan was BRL 1,260 million (circa USD 330 million). 

This program managed by the BNDES has the objective to provide financing for the incorporation of technological innovations in rural properties, aiming at increasing productivity and improving management.

Update
On 21 February 2019, the Ministry of Agriculture, Livestock and Supply of Brazil announced an increase in the budget allocated to the Inovagro credit line for the 2018/2019 Agricultural and Livestock Plan. The new resources allocated to the program are BRL 26 million (circa USD 7 million at the time of the announcement). Despite the budgetary increase, the total resources allocated to the Inovagro scheme for the 2018/2019 plan are still below the total amounts provided during the previous plan.

 
N/A
Inception date: 01 Jul 2018 | Removal date: 30 Jun 2019

State loan

In addition, the total budget allocated in the 2018/2019 Agricultural and Livestock Plan launched on 6 June  2018, to the Bancos Cooperativos program was decreased. The new budget was set at BRL 230 million (USD 60 million) while the budget provided in the previous Plan was BRL 600 million (circa USD 157 million). 

The announced resources will be available for the period lasting between 1 July 2018 and 30 June 2019.

 
N/A
Inception date: 01 Jul 2018 | Removal date: 30 Jun 2019

State loan

On the contrary, the 2018/2019 Agricultural and Livestock Plan launched on 6 June 2018, by the Brazilian government, increased the budget for the MODERAGRO Program.  The new budget was set at BRL 800 million (USD 209.3 million) while the budget provided in the previous plan was BRL 640 million (USD 167.5 million).

This program managed by the BNDES, has the objective to provide financing for the incorporation of technological innovations in rural properties, aiming at increasing productivity and improving management.

Update
On 21 February 2019, the Ministry of Agriculture, Livestock and Supply of Brazil announced an increase in the budget allocated to the MODERAGRO credit line for the 2018/2019 Agricultural and Livestock Plan. The new resources allocated to the program are BRL 29 million (over USD 7.7 million at the time of the announcement).

 
N/A
Inception date: 01 Jul 2018 | Removal date: 30 Jun 2019

State loan

Also, the Brazilian Ministry of Agriculture announced an increase on the budget of the MODERINFRA Program enclosed on the 2018/2019 Agricultural and Livestock Plan. The new budget was set at BRL 850 million (USD 222.4 million) while the budget provided in the previous Plan was BRL 600 million (USD 157 million). 

Update
On 21 February 2019, the Ministry of Agriculture, Livestock and Supply of Brazil announced an increase in the budget allocated to the MODERINFRA Program for the 2018/2019 Agricultural and Livestock Plan. The new resources allocated to the program are BRL 26 million (circa USD 7 million at the time of the announcement).

 
N/A
Inception date: 01 Jul 2018 | Removal date: 30 Jun 2019

State loan

Another budgetary increase announced on the 2018/2019 Agricultural and Livestock Plan by the Ministry f Agriculture of Brazil 6 June 2018, applies to the PCA program. The new budget has been set at BRL 2,150 million (USD 562.5 million) while previously was set at BRL 1,600 million (USD 418.6 million).

The PCA program finances the extension and construction of new warehouses and enjoys interest rates ranging between 5.25% and 6%.

Update
On 21 February 2019, the Ministry of Agriculture, Livestock and Supply of Brazil announced an increase in the budget allocated to the PCA program for the 2018/2019 Agricultural and Livestock Plan. The new resources allocated to the program are BRL 76 million (over USD 20 million at the time of the announcement).

 
N/A
Inception date: 01 Jul 2018 | Removal date: 30 Jun 2019

Price stabilisation

Moreover, the total budget allocated to the program to support commercialization included in the Brazilian 2018/2019 Agricultural and Livestock Plan presented on 6 June 2018, was also increased. The new budget amounted to BRL 2.6 billion (USD 680.3 million) whereas the in the previous plan, the total resources allocated to this program were BRL 1.4 billion (USD 366 million). 

These resources are used as part of the Minimum Price Policy to ensure commodities maintain a certain price and purchase products and maintenance of public stocks.

Inception date: 01 Jul 2018 | Removal date: 30 Jun 2019

Interest payment subsidy

Finally, the 2018/2019 Agricultural and Livestock Plan launched by the Brazilian government on 6 June 2018, also increased the budget for the interest payment subsidy applied to the Rural Insurance Program. The new budget was set at BRL 600 (USD 156.9 million) while the budget provided in the 2017/2018 Agricultural and Livestock Plan reached BRL 550 million (USD 143.9 million).

 
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