In a record funding for the Agricultural sector, the Brazilian government said it will offer finance of $54 billion for the coming farming season in the country. According to a statement from the country’s Ministry for Agriculture, this new funding presents an 8% increase from the 2009 funding. In the fund, about $33 billion is meant for loans with below-market interest rates for farmers.
Brazil is the world’s biggest exporter of coffee, sugar, beef, poultry, ethanol and other agricultural products. The new funding plan, as laid out by the government, will commence in July 1st, and includes a $1.1 billion in funding for farmers for the implementation of agricultural practices aimed at lowering carbon emissions. The plans underscore will be a method that integrates crops, livestock and timber using the same farming land.
The Brazilian President, Luiz Inacio Lula da Silva, made the announcement yesterday in a bid to support agricultural production for the next crop season. The Treasury is expected to subsidize the loan rates with a targeted landing of 60.7 billion reals from the amount for famers and a further 2.4 billion reals meant for sugar cane producers in the Center-South region for building inventory levels and incentives for northeastern fruit growers to boost output.
The Agriculture Minister said this funding was the highest volume of resources ever and it was a crucial and vital amount. As such, the Minister hopes that the country will experience record high crops in many sectors and subsequently, demanding more resources. Brazil’s Agricultural sector accounts for 40% of its exports and around a quarter of its GDP.
On the reduction of carbon emissions through suitable farming practices, as the fund expects with its loans, the government also announced the setting up of a $1 billion programme targeting reduction of greenhouse gas emissions in the Agriculture Sector, said the Minister for Agriculture. Under the recently released Agricultural and Livestock Plan 2010/2011, Brasilia intends to invest $2 billion reals in the Low Carbon Agriculture Program during the 2020/2011 harvest season.
According to the Minister, over the next harvest season, about 3.15 billion reals is to be allocated for agronomic practices that enable environmental preservation and productivity enhancement. In the plan, government loans will also be availed in other low-carbon programs like the Sustainable Production Agribusiness and the Commercial Plantation to Recover Forests. The Brazilian government has set a target aimed at reducing the Agricultural sector’s carbon emissions by between 4.9 to 6.1%, by the year 2020.
June 10, 2010.