AreaBrazil
Commodity GroupOilseeds, oils and meals
CommodityAgriculture crops and livestock
Date01/06/2021
Policy CategoryProduction
Policy InstrumentProduction support
DescriptionPresented its agricultural support package for the 2021/22 season, emphasizing the programmes accent on financial support for sustainable forms of production, environmental conservation measures, on-farm investments and family farming. Compared with the previous season, the total volume of loans available to farmers was raised, as were government outlays for interest rate subsidies. Funding for investments aimed at reducing greenhouse gas (GHG) emissions were doubled, and farmer investments into renewable energy generation and bio-input/fertilizer production qualified for support. Furthermore, allocations under the Governments family-farm programme and rural insurance schemes were increased, along with funding for investments in on-farm grain storage.
NotesBRAZIL agricultural policy: In June, the Government presented its agricultural support package for the 2021/22 season, emphasizing the programmes accent on financial support for sustainable forms of production, environment conservation measures, on-farm investments, and family farming. Overall, in the forthcoming season, farmers will have access to various types of loans adding up to BRL 251.2 billion (USD 47.9 billion) about 6 percent more than in the current season. Similar to previous years, marketing assistance loans will account for almost three quarters of public credit, with the remainder earmarked for various on-farm investment programmes. Roughly, two thirds of the funds will be provided on concessional terms, with average interest rates ranging slightly above those applied in 2020/21. Total Government outlays for interest rate subsidies have been set at BRL 13 billion (USD 2.5 billion), some 13 percent above this seasons level. Funding for investments aimed at reducing GHG emissions has been doubled, with borrowers expected to enjoy interest rates between 5.5 percent and 7 percent, grace periods of up to 8 years and maximum repayment periods of 12 years. Furthermore, farmer investments into renewable energy generation and bio-inputs/fertilizers production will qualify for support. The Government also set aside funds for conducting crop-specific studies on climate risks. Moreover, allocations under the Governments family-farm programme and rural insurance schemes have been raised, along with funding for investments in on-farm grain storage.
