Area
Brazil
Commodity Group
Oilseeds, oils and meals
Commodity
All crops, livestock products
Date
01/05/2019
Policy Category
Production
Policy Instrument
Agricultural policy
Description
Presented the agricultural support programme for the 2019/20 season, highlighting that particular attention would be paid to the needs of small- and medium-sized farms and to the following areas: crop insurance, low-carbon agriculture, technical innovation, irrigation, soil improvement, new credit tools, forest protection, and dairy, pork and poultry production. Informed that all major credit programmes would be expanded, although the interest rates for larger producers would be raised. While total government outlays for interest rate subsidies would be only marginally higher than last season, farmers would benefit from additional options to apply for private loans. Most marketing assistance programmes were also re- authorized, although with reduced budgetary allocations. Outlays for crop insurance programmes, by contrast, were set to expand sizeably for the second year in succession.
Notes
The Government presented its agricultural support programmes for the 2019/20 season, highlighting that particular attention had been given to the needs of small and medium-sized farms and to the following areas: crop insurance; low-carbon agriculture; technical innovation; irrigation; soil improvement; new credit tools; forest protection; and dairy, pork and poultry production. In the new season, farmers will be granted access to various types of concessional loans adding up to BRL 222.7 billion (USD 59.2 billion). Total government outlays for interest rate subsidies have been set at BRL 10 billion (USD 2.66 billion), only marginally higher than last season. While all the major credit programmes will be expanded, the interest rates for larger producers have been raised. Marketing assistance programmes have also been reauthorized, although with reduced budgetary allocations (in part reflecting lower world market prices). By contrast, outlays for crop insurance programmes are set to expand sizeably for the second year in succession: in 2019/20, these programmes are expected to cover 15.6 million hectares through some 212 000 policies worth a total of BRL 42 billion (USD 11 billion). Finally, producers will be provided with additional options to apply with governmental assistance for private loans.
