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Brazil introduces largest ag stimulus plan ever
Story Date: 7/2/2012
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Source: Bob Moser, MEATINGPLACE, 6/29/12
Brazil introduced a new Agriculture and Livestock stimulus plan that earmarks BRL115.2 billion (US$55.25 billion) for business investment during the 2012/13 harvest, with low-interest credit lines for producers of beef cattle, swine, goats and sheep, the Ministry of Agriculture said Thursday.
For beef cattle farmers, the program's credit lines were renewed for the purchase of matrices and breeding cattle or buffalo, where the limit per producer is BRL750,000 (US$359,712), with up to five years for repayment and an interest rate of 5.5 percent.
For swine producers, a credit line was established for matrices retention, with a limit per producer of BRL1.2 million (US$575,539), a payment period of two years and 5.5 percent interest rate. For goat and sheep production, credit of up to BRL600,000 (US$287,769) is available for purchasing breeder animals, with payment plans of up to 10 years and a 5.5 percent interest rate.
Of the total funding commitment, BRL86.9 billion (US$41.68 billion) has been designated for business costs and marketing, and BRL28.2 billion (US$13.53 billion) for investment programs. It represents a 7.5 percent increase in government lending for agriculture from last year, and the new plan reduces annual interest rates from 6.75 percent to 5.5 percent.
Different segments of the stimulus plan will be set aside for small, medium and large producers, but the brunt of the funding will go towards medium-sized farmers, cooperatives and sustainable producers, said Mendes Ribeiro Filho, agriculture minister. The ministry's Programa ABC, which incentivizes sustainable “best practices” adoption by farmers, will have BRL3.4 billion (US$1.63 billion) available for lending.
Limits on financing per producer were raised 23 percent from last year's program, and funding ceilings for cooperatives registered with two government programs were also raised.
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