Government wants to act before crisis hits agribusiness, minister says
The combination of a predicted shortfall in Brazil’s grain harvest and continued low international commodity prices has created a scenario that is as rare and complex as it is potentially damaging to rural producers and challenging for agricultural policy in 2024, according to Agriculture Minister Carlos Fávaro.The focus of the ministry will be to anticipate the "imminent crisis" and announce measures to help farmers before the end of the soybean harvest, the minister told Valor. The intention is to avoid an environment of debt and damage before taking action. He also believes that the second corn harvest will be smaller than originally predicted.Mr. Fávaro informed President Lula of the situation in a phone call on Tuesday and will meet with Finance Minister Fernando Haddad next week to discuss measures to minimize the financial impact on farmers.Faced with budgetary constraints and still incipient data on losses in the soybean harvest that has just begun across the country, government officials are doing the math and only projecting scenarios for possible extensions of investment installments, the creation of new lines of financing, and the implementation of measures to support marketing.Mr. Fávaro acknowledged that "the profitability of this harvest is already gone, even for the highly productive ones"—due to the still high production costs and the impact of the climate on the average yield—and that 2024 will be an atypical year. "We will work with what we have and minimize the impact so that we can grow again in the 2024/25 harvest," he said. "Now we have to do everything we can to move forward with as little impact as possible," he added."Many producers will harvest less and some much less than last year. The drop in production with low prices sends up a red flag, so we have to act very quickly. It’s a rare scenario, but...
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