The Confederation of Agriculture and Livestock of Brazil (CNA) promoted last Wednesday (21) the “Executive Dialogue with Entities of Complementary Social Security: investment potential in Brazilian agriculture.”
The event was a first contact with representatives of these entities with the objective of seeking new alternative sources of financing of rural activity through public and private pension funds, accompanying the growth of activity.
At the opening of the meeting, the president of CNA, João Martins, highlighted the records of agricultural production in the country and said that the development of the activity requires more sources of resources to reduce dependence on official credit.
“The CNA has been concerned about the reduction of government resources in the sector. We are looking for alternatives to bring resources to the agricultural sector, because its growth is irreversible. We have a fantastic outlook for the industry, but the speed to get where we can get depends on the capabilities. And so we are talking to the pension funds so they can put resources in the segment, “he said.
In the evaluation of the CNA vice president, José Mário Schreiner, the government no longer has the capacity to give the answers that the sector needs. In this way, he added: “We must seek new ways to invest in infrastructure, logistics, and increase access to rural insurance and provide legal security for investors to have a return.”
For the 2nd Vice President of Finance, Muni Lourenço, the CNA has been worried about the fiscal restrictions of the government and in this way looks for alternatives to minimize the reduction of official credit. “It is fundamental to contribute new sources of resources and investments in the agricultural sector”.
According to the Secretary of Agricultural Policy of the Ministry of Agriculture, Wilson Vaz, official credit finances 30 to 35 percent of rural activity. “In the face of the resources raised by pension funds and with all the potential that agriculture has and the advance of productive chains, it is a good case of investments to attract these resources.”
The representatives of the private pension entities received the proposal to invest in agriculture. According to Moacir Teixeira, founding partner of the Ecoagro Group, which operates in the capital markets segment for agribusiness, the meeting was a kick-start to try to bring to the activity an important source of long-term financing.
“For lack of option, pension funds end up applying 90% of their resources in public bonds and we want to direct a part to the agricultural sector,” said Teixeira.
According to José Carlos Granjeiro, financial director of the pension fund of the National Supply Company (Conab), “the more you invest in sectors such as agriculture and livestock, which generate growth, you are turning capital instead of just paying interest on debts “.
This text was translated by machine from Brazilian Portuguese.