As part of its policy to support prices of agricultural products, the Government assigned in late September, 150 million of Brazilian Real (BRL), or about USD 61 million, to subsidize prices of wheat from the 2014 on-going harvest, expected at a record level close to 7.8 million tonnes. As per maize crop, the support will be done under the Producer’s Equalization Payment Programme (“Pepro”), which is triggered whenever the market prices fall below the guaranteed minimum prices set by the Government. Wheat is not directly purchased by the Government, which instead organizes auctions through CONAB (Companhia Nacional de Abastecimiento) and pays farmers or cooperatives the difference between the market price and the minimum official price. The average market producer prices in the main growing state of Parana fell sharply in August and in late September was BRL 516.5 per tonne, or about USD 210, the lowest level since July 2012. It is expected that about 6 million tonnes of 2014 wheat crop will be subsidized this year. Under the Pepro for maize, the Government has already spent BRL 253 million, or USD 103 million, subsidizing the price of 5.77 million tonnes of maize. The total assignment for the maize programme was reduced from its original BRL 500 million, or about 203 USD million, to BRL 300 million, or USD 122 million. The allocation was reduced because prices for other agricultural products, including cotton, oranges, rubber and rice, also fell below the minimum official prices and funds had to be shared among different commodities. During the second half of October CONAB has scheduled eight more auctions, including for wheat and maize. In order to sustain prices and farmers’incomes, the Government also announced plans to purchase 1 to 1.5 million tonnes of maize and 400 000 to 600 000 tonnes of wheat to replenish public stocks.