Brazil Launches Ag, Livestock Investment Project For '12-13 Crop

By CnAgri2012-07-02 20:36:40 Print

Brazil's President Dilma Rousseff and Minister of Agriculture, Livestock and Supply, Mendes Ribeiro Filho launched a new Agriculture and Livestock Plan for Brazil, which will include $55.5 billion in federal government investments in Brazil's agriculture business crop over the 2012/2013 season. This is the highest amount of resources ever invested in this sector.

Of these resources, $41.9 billion will finance the cost and marketing of crops, and $13.6 billion will support investment programs.

The new plan also increases the previous crop credit by of 7.5 percent and reduces the controlled annual interest rate from 6.75 percent to 5.5 percent.

The new rate is attractive to investors in agriculture, as it represents an 18.5 percent decrease in financing costs for Brazilian farmers.

The total resources with controlled interest rate will be $45.2 billion, which represents an increase of 18.5 percent over the programmed resources for the previous harvest.

Minister Mendes Ribeiro has commented that resources will be essential for the producers to increase agricultural production and ensure food security with respect to the environment.