Funding for the ABC (Low Carbon Agriculture) Plan in the 2018/2019 Agricultural and Livestock Plan has already reached R $ 1.03 billion between July and November of this year, compared to the same period in 2017, according to figures from the Ministry of Agriculture, Livestock and Livestock. Supply (MPLS). There was a growth of 57% in the number of contracts, a 104% increase in contracted value and a 74% increase in the area financed.
“The reduction of 8% to 6.5% per annum in the interest rate of the credit line in relation to the previous year was a stimulus for producers to take credit,” says Plano Plan coordinator Elvison Ramos.
In the five months of the current crop, the main technologies of the ABC Plan, degraded pasture recovery, crop-livestock-forest integration, no-tillage system and planted forests, increased values in almost all items (contracts, financed value and area financed), except in the line of planted forests, which presented a reduction of 4% in its area.
All other modalities increased from 20% to 266%, the latter in terms of value contracted in the ILPF (Integration, Farming, Livestock, Forest) projects. With seven months left to finish the current crop plan, the number of municipalities that contracted financing through the ABC Program increased by 71% compared to the 12 months of the 2017/2018 crop year.
Growth
From January 2013 until last month the credit line reached more than 34,000 contracts, surpassed the mark of R $ 17 billion reais and added more than 9.1 million hectares with conservation practices. This area is equivalent to nearly 13 million football pitches aggregated with sustainable production. The numbers were obtained with financing in more than half of the 5,570 Brazilian municipalities, different regions and biomes of Brazil.
All regions registered expansion in the number of ABC contracts, in the amount financed and in the current harvest area. The region that obtained the greatest increase was the Midwest, followed by the Southeast. The Northeast region was the third in contracts and value financed and the North region, the third in funded area. The South region had the lowest growth rates, but the lowest increase was in the area financed, with an increase of about 20%.
The performance of the states in the current crop year was well distributed among the Brazilian regions, with Pará being the one with the best performance in the percentage change in relation to the last harvest year in the contracts, financed amount and area financed, followed by Espírito Santo, Mato Grosso and Pernambuco. The largest expansions in the area financed went to Pará (increase of 880%), Espírito Santo (increase of about 680%) and Mato Grosso (increase of 500%).
As for the contracted value, the highest increase was again in Pará (more than 825%), Pernambuco (almost 590%) and Espírito Santo (more than 500%). The increase in the number of contracts was also led by Pará with a 475% increase, after Espírito Santo with 375% and Mato Grosso with 216%.
However, when speaking of absolute numbers, Minas Gerais is the state that contributed the most to the numbers obtained in this current crop year in terms of contracts, financed value and area financed, with more than 19% of the number of contracts, more than 15 % of the amount contracted and almost 14% of the area financed. São Paulo is the next in number of contracts (more than 14%) and Tocantins closes the list with more than 9.6% in this regard.
As for the contracted value, Minas Gerais is followed by Bahia with more than 10% and, soon after, comes Pará with 9.3%. And when it comes to the financed area, the list of the largest participations is completed with Bahia (13.5%) and Mato Grosso (11.6%).
This text was translated by machine from Brazilian Portuguese.