Brazil has promised farmers 78 billion Reais, approximately 48 billion US dollars, in soft loans to promote agriculture production and help curb inflation announced on Wednesday the country’s development bank, BNDES.
The amount includes 65 billion Reais for commercial farmers in the crop year that began in July and is 12% higher than the previous crop said Agriculture Minister Reinhold Stephanes during a meeting with farm organizations in the southern city of Curitiba. The rest is earmarked to family and subsistence farmers.
With prices of agriculture commodities soaring to record prices Brazil is seeking to increase output, productivity and inventories, said Stephanes.
“This farm plan is part of a strategic vision” added Stephanes who pointed out that “the future of agriculture depends on productivity and efficiency”.
Brazil has the potential to increase crops but faces serious infrastructure problems with an inefficient transport system, lack of storage capacity and insufficient port facilities.