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Brazilian government guarantees R$ 10 billion for next crop
Jan. 26, 2016
The government, highlighted the minister, is aware of the importance of pre-funding credit and will guarantee the resources for the 2016/2017 season. Kátia Abreu took the subject to president Dilma Roussef during a hearing last Wednesday (6) and received support from the head of Brazil's Executive power.
“We are working since last year and Bank of Brazil guarantted that it has R$ 10 billion of rural savings and demand deposits for the pre-funding. This is solved, does not worry me anymore,” said the minister to journalists. “The president is very attentive to the pre-funding because she knows that the lack of it can result in losses for farmers”.
Credit
Kátia Abrey and Nelson Barbosa discussed yet new ways of defraying agricultural credit during the 2016/2017 crop. The subject was treated with anticipation to assure the high volume possible for financing. Last year, the government provided R$ 187.7 billion, 20% more than the previous crop.
Due to the fiscal adjustment implemented by the federal government, both ministries have sought alternatives beyond traditional lines of credit support.
“The Ministry of Agriculture is a partner of fiscal adjustment. We do not want benefits, only what agriculture needs, only the strict necessary. This is the sector that brings more results to the country. Therefore, we can anticipate the discussion and start to think new ways of financing,” stresses the minister.
Among the alternatives studies by the two ministries, there is the possibility of the emission of the Certificate of Receivables of Farm Business (CRA) indexed to the dollar and eventual changes at the credit grants.
Insurance
According to the minister, the agricultural insurance can reach R$ 1 billion in 2016 covering 20 million hectares. The Union's budget already guarantees R$ 741 million, but the ministry studies new sources of revenue to increase the resources.
Of a total of 60 million hectares of planted area in the country, the ministry of Agriculture evaluates that 30 million have climate risks, signaled Kátia Abreu. “With R$ 1 billion, we have achieved to cover 20 million hectares, which is almost 10% of the critical area of the country. It would be a huge advance,” said. “Even in a year of adjustment, the Ministry of Agriculture, the Finance, Bank of Brazil and Planning Ministry have rolled up the sleeves to find funding resources to cover the difference”.
Source: AgroNews
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