Brazil Releases Plano Safra 2023/24 for Family Farmers

Brazilian President Luiz Inacio Lula da Silva released the second part of the Plano Safra 2023/24 on Wednesday. This part is dedicated to family farmers and it provides R$ 77.7 billion in funding when all the various programs are combined. This represents a record level of spending and a 34% increase compared to last year. This announcement came a day after the government released the Plano Safra 2022/23 for medium and large-scale producers with funding of R$ 364.22 billion. The combined funding for 2023/24 is about 440 billion reals (approximately $91.8 billion). Both plans will start on July 1, 2023 and run through June 30, 2024.
The family farmers’ plan will have a 4% interest rate on loans for food production such as rice, edible beans, manioc, vegetables, eggs, milk, etc. Interest rates will be 3% on loans for sustainable agricultural production such as organic foods. Capital investment loans will have a 4% interest rate.
Approximately 80% of the funding for these two plans will go toward production and marketing loans with 20% for capital investments. The interest rates on loans for medium-sized producers will be approximately 8% with 12% for others. Interest rates for capital investments will vary from 7% to 12.5%.
The interest rates on loans from both plans are subsidized by the government and are below market rates. The Selic rate in Brazil (prime rate) is currently 13.75% with expectations it will decline to 12.25% by the end of 2023 and 9.5% by the end of 2024.
The government has put special emphasis in both plans on sustainable low carbon agricultural production.
Read also
BLACK SEA OIL TRADE-2025 to take place in Bucharest оn September 23!
Ukraine reduces barley production
Brazil bolsters soy market position despite Argentina’s competition
Egypt Expands Arable Land as Part of the “Future of Egypt” Project
Malaysia boosts palm oil exports amid tariff cuts and increased cooperation with C...
Write to us
Our manager will contact you soon