The government of Brazil and the Bank of Brazil are addressing producers' concerns by making credit available as soon as this month for the purchases of inputs for the 2016-17 crop season. Credit wasn't available until around June last year for such purchases and producers were forced to pay higher prices for inputs due to the softening Brazilian currency.
"The credit is part of the Pre-Cost program which is included in the National Program to Help Medium Size Rural Producers (Pronamp)," reports South American Crop Consultant Dr. Michael Cordonnier. "All of the loans will have subsidized interest rates. For loans up to R$ 710,000, the interest rate will be 7.75% and for loans up to R$ 1,200,000, the interest rate will be 8.75%. These subsidized interest rates are real bargains for Brazilian farmers because if they went to a commercial bank for a loan, the interest rates would probably be over 20%. These loans will be used for the inputs for soybeans, corn, rice and coffee."