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Financing for the 2016/2017 harvest exceeds R $ 137 billion

Business Agriculture

Credit contracting was applied for costs, marketing, investments and industrialization, mainly of soy and maize

The contracting of credits from business agriculture in the 2016/2017 harvest reached R $ 137.2 billion, according to the Ministry of Agriculture, Livestock and Supply (Map). Of this total, R $ 82.3 billion was for funding, R $ 23 billion for commercialization, R $ 26.5 for investments and R $ 5.4 billion for industrialization.

The distribution of credit for the costing of agricultural products has the participation of soybeans (34.7%), corn (12.8%) and inputs for cooperatives (10.8%). Livestock production stands out, accounting for 66.8% of funding.

The contracting of rural credit for the crop ended on June 30 and, according to the Secretariat of Agricultural Policy of the Map, maintained the same distribution observed in previous agricultural years. According to the ministry, the cost of credit fell due to the fact that industrialization is no longer classified as a cost, but it is a specific modality of rural credit.

While interest-bearing borrowings decreased 19% compared to the previous crop, free interest loans increased 72%, largely as a result of the allocation of funds from the Agribusiness Letter of Credit (LCA) to the rural credit.

Regional participation

The regional highlights in the financing of agricultural financing were the South regions, which accounted for 33% of the cost and 26% of the investments, and the Midwest, which received 30% of the total cost credit and 36% of investment credit.

Concerning the participation of financial agents in the financing of agriculture, public banks reduced their participation by 23% with controlled resources. The free resources portion has not changed. Private banks increased 10% interest at controlled interest rates and 36% at free interest.

Source: Portal Brasil, with information from the Ministry of Agriculture