Bank of Brazil Approves R$101bn For Brazilian Agriculture For 2016/17
The Bank of Brazil has committed R $101bn to the Brazilian agricultural industry over the 2016/17 harvest. Of this amount, R $10bn will be put toward the agribusiness sector while R $91bn will be made available to producers and cooperatives in the form of rural credit.
These contributions amount to a 10% increase from the amount made available in the previous harvest.
Of the total finance intended for producers and cooperatives, R $71.1bn will go towards operations and marketing while R $19.9bn is dedicated specifically to agricultural investment credits (of which 93% have controlled interest rates).
The Bank of Brazil will increase credit available to the National Program to Support the Middle Rural Producer (Pronamp) by 7% on the previous harvest, totaling R $15.3bn this season.
The National Family Farming Strengthening Program (Pronaf), it will received an 8% increase to R $14.6bn, and R $2.2bn will be invested in the Agriculture Program Low Carbon (ABC).
The largest bank in Latin America also intends to invest R $1bn into the Program of Construction and Warehouse Expansion (PCA) through 2016/17 to improve Brazil’s infrastructure and static storage capacity.
The Bank of Brazil also announced that they aim to stimulate technological innovation in agriculture by dedicating R $1bn to the Incentive Program of Technological Innovation in Agricultural Production (Inovagro), as well as R $3.8bn to the Modernization Program of the Farm Tractor Fleet and Associated Implements and Harvesters (Moderfrota).
Their farming community has known for some time of the huge potential there is in Brazilian agriculture. ”
“This massive commitment of over R $100bn to farming programs is great news for Brazil’s agricultural industry,” commented David West, senior partner at Challenge Advisory. “Their farming community has known for some time of the huge potential there is in Brazilian agriculture. These investments will surely help to modernize Brazilian farming methods and take advantage of the productivity and cost-saving benefits of precision agriculture techniques.”