The amount will finance agricultural production in 2024/2025; for family producers, there will be almost R$75 billion in credit
The president Luiz Inácio Lula da Silva (PT) launches this Wednesday (3.Jul.2024) the new Safra Plan, aimed at the 2024/2025 production cycle. The value of the package to finance agricultural production will be a record: R$ 475.5 billionaccording to already announced by the Minister of Agriculture and Livestock, Carlos Favaro.
Just like in the last harvest, the new plan will be divided into two. The first, prepared by the Ministry of Agriculture and Livestock, is the most traditional and robust, aimed at financing corporate agriculture. The second, on the other hand, deals with family farmers. It is prepared by the Ministry of Agrarian Development.
Here is the announced division:
- Business Harvest Plan – R$400.6 billion in credit, of which R$293.9 billion will be for financing and marketing and R$106.7 billion for investments.
- Family Farming Harvest Plan – R$74.98 billion in credit.
Two events will be held at the Planalto Palace this Wednesday to launch the packages. At 11 am, Lula will announce the family farming package. At 3 pm, the business plan.
According to a survey by Poder360the total value will be the highest in history, surpassing the previous record of R$445.8 billion in the last harvest. The numbers were adjusted by the IPCA (Broad Consumer Price Index).
The package would be released last Wednesday (June 26), but It was postponed due to disagreements regarding the value. The Lula government had already promising a record Harvest Plan, above the value of 2023/2024. The agribusiness sector was already pushing for an even larger package, exceeding R$500 billion, but the figure will not be reached.
The size of the new plan, the 2nd of the Lula 3 government, will be a nod to ruralists – a sector that is not so sympathetic to the president and has worked hand in hand with Jair Bolsonaro (PL) in the last administration.
COST TO GOVERNMENT
The Harvest Plan is a federal government program that offers credit lines and incentives to support the agricultural sector. This money is lent by public banks, which then receive the money back. Interest rates for the sector are reduced and the difference is paid by the government.
In the 2024/2025 Harvest Plan, the cost of interest equalization will increase by 23%, to R$16.7 billion. This is the portion of interest that will be subsidized, that is, paid for by the government, which makes credit for the sector cheaper.
For corporate agriculture, the National Treasury will apply R$6.3 billion in interest equalization, compared to R$5.1 billion in the current harvest. For family agriculture, the government will allocate R$10.4 billion to reduce interest. It was R$8.5 billion in the current harvest.
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