Detail

Brazil

Oilseeds, oils and meals

Agricultural products

01/07/2020

Production

Production support

Presented the agricultural support programme for 2020/21, highlighting the package’s renewed focus on small and medium-sized farms, fresh incentives for sustainable forms of production, and a further expansion in the Government’s crop insurance programme. Compared to 2019/20, the new programme features a higher total volume of farm loans and reduced average interest rates, while Government outlays for interest rate subsidies are set to increase by 15 percent.

BRAZIL – agricultural policy: In July, the Government presented its agricultural support programme for 2020/21, highlighting the package’s renewed focus on small and medium-sized farms, fresh incentives for sustainable forms of production, a further expansion in the crop insurance programme, and the inclusion of commercial fishing/aquaculture into the public loan schemes. Overall, in the new season, producers will have access to different types of loans adding up to BRL 236.3 billion (USD 43.5 billion) – about 6 percent more than last season. Roughly 65 percent of the funds will be provided on concessional terms, with average interest rates ranging below those applied in 2019/20. Marketing assistance loans will account for three quarters of public credit, with the remainder being earmarked for various types of on-farm investment. Total government outlays for interest rate subsidies have been set at BRL 11.5 billion (USD 2.1 billion), or 15 percent above last year’s level. At BRL 1.3 billion (USD 239 million), public outlays for crop insurance are set to expand sizeably for the third consecutive year. In 2020/21, 300 thousand insurance policies worth a total of BRL 52 billion (USD 9.6 billion) are expected to cover some 21 million hectares of farmland.