ANNOUNCEMENT 06 Aug 2014

In August 2014, the government of Brazil announced a change in production support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Globo, 6 August 2014, 'Minist?rio da Agricultura libera R$ 500 milh?es para leil?es de Pepro de milho': http://g1.globo.com/mato-grosso/agrodebate/noticia/2014/08/ministerio-da-agricultura-libera-r-500-milhoes-para-leiloes-de-pepro-de-milho.html

The Hand That Feeds U.S., fact sheet on Brazil: http://www.thehandthatfeedsus.org/handbook/BRAZIL.pdf


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 SECTORS

 

AFFECTED PRODUCTS