Brazil Announces Harvest Plan 2024/25 for Production Agriculture

On Wednesday, Brazil released their Harvest Plan 2024/25 (Plano Safra 2024/25). The amount of resources available for loans for medium and large farmers is R$ 400.59 billion, or an increase of 10% compared to 2023/24. An additional R$ 108 billion will be available in the form of Agribusiness Letters of Credit for a total of R$ 508.59 billion to promote the development of Brazilian agriculture. A separate plan for small family farmers will have available R$ 76 billion, which is up 6.2% from last year and 43.3% from 2022/23.

Brazil’s annual harvest plan primarily consists of lower interest loans that are usually more favorable to medium and smaller producers and less favorable for large producers. The loans available for medium and large size farmers will be 73% for production and marketing and 27% will be for investments. Interest on the loans will range from 7% to 12% depending on the activity and the size of the farming operation. The program will run from July 1, 2024 to June 30, 2025.

A sizable part of the Harvest Plan 2024/25 will be directed toward sustainable agriculture with emphasis on reduced carbon emissions. Under the RenovAgro part of the plan, there are incentives for renovation of degraded pastures, implementing crop-livestock-forest integrated production systems, and the use of best practices for conservation of natural resources. Palm oil production is also emphasized as a way to generate rural income and help in reforestation in the Amazon region.

There are 13 programs in the plan focusing on investments in innovation and modernization of production agriculture. These programs range from equipment purchases to grain storage construction with interest rates from 7% to 11.5% and loan lengths of 7 to 12 years.

Increasing food production for Brazilian consumers is an integral part of the plan for small family farmers with special emphasis on organic food production. Loans for organic food production carry an ultra-low interest rate of just 2%.

Tags: Brazil, agriculture, Production, farmers, loans, инвестиции, harvest plan