The Government of Brazil increased the minimum support prices for 2017 summer crops, including rice, maize and beans, to be planted from September. Under this mechanism, if domestic prices go below the minimum price, the Government pays farmers the difference between the market price and the minimum official price. In the key growing areas of the south, Rio Grande do Sul and Santa Catarina, the minimum support price for paddy was raised by almost 17.9 percent from BRL 29.67 (USD 8.98) to BRL 34.97 (USD 10.59) per bag of 50 kilograms. The minimum support prices for maize and beans were increased by 21.7 percent and 8.5 percent respectively. The measure aims to boost production after outputs declined significantly this year, mainly due to a reduction in the area planted.