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Expointer 2016 marks return of optimism and investment in farm business
Sep. 6, 2016
After months of political uncertainty in the political field and a serious crisis in the economy, there is a return of optimism at the 39th edition of Expointer, the largest outdoor farm show in Latin America. Last week, the impeachment of Dilma Rousseff was confirmed, and the new government of president Michel Temer took its place, as the attention of the farm businesses turned towards the south of Brazil, where the farm show was highlighted by an end of scarce credit and a new scenario of expanding business in the field.
The proof of this was in the return of National Economic and Social Development Bank (BNDES) to Expointer. After ten years away from the expo, the public financial institution was back, and confirmed of its being the largest lender in the nation’s farm business. Further, the bank announced that it lent R$ 15 billion during 2015/2016, reflecting a growth of 18% of the value of the rural sector, compared to the previous season.
For the present agricultural year of 2016/2017, which started on July 1st, BNDES expects to repeat being the leader in credit released for investments in the agricultural sector, with the lending of R$ 17.4 billion, which would reflect a 20% growth. Considering this total, already authorized by the Treasury, R$ 4.7 billion will be used for the acquisition of agricultural machinery; R$ 2 billion for working capital for farm cooperatives; and R$ 10.7 billion for investment projects in family farming and farm businesses.
Another major supplier of rural credit in the country, Banco do Brasil, has also demonstrated its optimism in the country’s farm sector and announced that, during Expointer 2016, it would write a larger volume of deals than last year. In 2015, the bank received 2,800 proposals for financing at the farm show, moving R$ 506.8 billion, and reported that this would limit the volume of resources available this year.
Meanwhile, Secretary of Agriculture in the state of Rio Grande do Sul and the organizer of the farm show, Ernani Polo, confirmed the reasons for this optimism. "The expectation is always positive. Of course, that scenario leaves us a bit apprehensive, due to the economic context. But there is an expectation that we will have a large volume of business. It is the same way with public participation. Sometimes, the deals are not closed or concluded at the fair, but are prospected here and forwarded. So it ends up being a showcase, an opportunity for future months," noted Polo.
Source: AgroNews
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