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Brazil’s Grain Storage Builds On-Farm

28 May 2014

BRAZIL - Brazilian farmers have accessed a total of US$1.8 billion as part of a storage plan financing the construction of silos and warehouses in 2013-2014.

As part of the Brazil Farm Bill, or Plano Safra as it's called locally, the government announced a total of R$ 156.1 billion (US$ 70.4 billion) on credit lines available to farmers, according to Black Sea Grain.

Of those, nearly US$2.3 billion would be available to farmers and cereal traders to increase storage capacity. On the other hand, the average interest rate paid by farmers increased one percentage point to 6.5% per year.

Brazil’s Agriculture Minister, Neri Geller, said the interest rate hike will not have a big impact on farmers. The overall economy was hit with a 3.5% rate increase, while farm-lending rates went up just 1%. He believes farmers were preserved.

“The adjustments were way below the interest rates of the whole economy; the Central Bank set up from 7.5% to 11% in the last few years,” Geller affirmed.

TheCropSite News Desk

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