The Brazilian Ministry of Agriculture reported on July 26 (2012) that funding for agriculture totaled R$ 106.4 billion during the last harvest, between July 2011 and June 2012. The amount is 0.4% higher than for the previous harvest, when financing of R$ 106 billion was released.

Of this total, corporate agriculture received R$ 93.5 billion and family agriculture R$ 12.9 billion. Although the total amount of financing has remained fairly stable, funding for family agriculture grew 12.1% on the year. Credit for corporate agriculture fell by 1% compared with the 2010/2011 harvest.

According to the Ministry of Agriculture the majority of resources, R$ 72.14 billion, was used to finance harvesting and commercialization costs. In total the government provided R$ 80.24 billion in official lines of credit. Between July 2011 and June 2012 a sum of R$ 21.36 billion was disbursed for investment programs, of a total of R$ 27 billion available.

Among the lines of credit for commercialization costs, the largest disbursement occurred through the National Medium-scale Agricultural Producer Support program (Pronamp). Pronamp granted R$ 5.59 billion in financing at an interest rate of 6.5% p.a., a value 48.9% higher than during the previous harvest.

Among financing for investment the greatest volume of activity was through the Investment Support Program (“PSI”) of the Banco Nacional de Desenvolvimento Econômico e Social (BNDES). PSI granted R$ 6.04 billion in rural financing at an interest rate of 5.5% p.a., a total 3.4% higher than in the previous harvest.

Other lines of BNDES credit are also highlighted. The Program for Modernization of Agriculture and Conservation of Natural Resources (Moderagro) financed R$ 512.1 million and the Incentive Program for Irrigation and Storage (Moderinfra) financed R$ 227.7 million. Both programs have an interest rate of 6.75% per year.

31 July 2012