Brazil's credit plan for small producers at record $14.7 billion

Brazil's government Wednesday announced BRL71.6 billion ($14.7 billion) in credit lines for small agriculture producers, a 34% year-on-year increase, under the National Program for the Strengthening of Family Farming (Pronaf).

The resources are part of the Plano Safra federal program of subsidized agriculture credit in the 2023/24 crop year.

Combined with the record BRL364.3 billion ($75.9 billion) announced on Tuesday for medium and large producers, the government will destinate BRL 435.9 billion ($90 billion) in credit lines for the country's farmers.  

The figure is higher than the BRL403.8 billion ($84.04 billion) requested by Brazil’s farmer's union (CNA), in an attempt to ingratiate Luiz Inácio Lula da Silva's new government with the producers, largely linked to the former president, Jair Bolsonaro.

Resources for small and big producers were announced separately as they are now administered by different ministries: Agricultural Development and Agriculture and Livestock, respectively.    

The small producer’s interest rates declined by one percentage point from the past crop year to 4% per year for products of basic consumption, such as rice, beans and milk, among others.