Government announces BRL 7.6 billion for the Crop Plan and rural credit

The Minister of Agriculture and Livestock, Carlos Fávaro, announced this Tuesday (6) the release of R$ 3.6 billion for the Safra Plan (Safrinha) and R$ 4 billion in a line of financing in dollars for investments in credit rural – for the construction and expansion of warehouses, irrigation works, formation and recovery of pastures, generation and distribution of energy from renewable sources and environmental regularization of the property. The announcement was made during the opening of the Bahia Farm Show, in Luís Eduardo Magalhães (BA). President Luiz Inácio Lula da Silva also participated of the event.

“The dollarized line is no longer just for investments in machinery. It is now a credit line for programs. Everything the producer needs, whether it be the purchase of limestone, the conversion of pastures into agricultural areas, all investments in machines, warehouses. Even the civil construction of these works will be financed by this dollarized line of credit”, he explained.

The minister also highlighted a line of credit to support side roads, which allow the flow of goods and services in the rural areas of the municipalities. In general, these routes are generated by taking advantage of existing trails and paths, conditioned to a geometric layout full of strong ramps and sharp curves.

“We have already talked to the governor (of Bahia, Jerônimo Rodrigues), the (Minister of the Civil House) Rui Costa, the group of deputies from the state of Bahia, so that we can form partnerships in neighboring roads. The Ministry of Agriculture, the state government da Bahia, President Lula’s government and the producers to replace wooden bridges, tubular galleries, gravel the highways, integrate with the paved highways and make logistics more competitive”, stated Fávaro.

Investment

According to the Ministry of Agriculture, the resources will be provided by the National Bank for Economic and Social Development (BNDES). The financing has a fixed interest rate of up to 8.06% per year plus the variation of the dollar and a term of 120 months, with a grace period of up to 24.

In all, in this first semester, the BNDES makes available around R$ 11 billion for the agricultural sector. Banco do Brasil, in May 2023, registered the largest investment in its entire history in the sector, totaling approximately R$ 15 billion.