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Brazil govt ups rural credit offering

The Brazilian government is raising the amount of credit available to growers, while cutting subsidies for the 2015/16 growing season. It is raising the supply of general resources by some 20% to R$187,700 million (US$59,100 million at the current rate). But a larger share of those resources will be made available at market interest rates that could reportedly be as high as 20% per year. The amount of funds to be offered at “controlled rates” is 2.2% down on the 2014/15 season at some R$129,800 million (US$40,900 million). The credit limit on each farmer has risen by 8%. The Parana growers association, the Faep, reportedly estimates that production cost changes as well as the new credit offers will result in growers facing 15% higher costs to grow their crops this coming year.



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