The report released on Friday (09) by the Ministry of Agriculture, Livestock and Supply (MAP), shows that medium and large farmers took R $ 92.1 billion in loans through credit official in the current agricultural season 2017/18.
The amount related to funding for costing, marketing, industrialization and investment activities between July last year and February of this year represents an increase of 12.4% in relation to that contracted in the same period of the previous harvest. The amount is led by financing for commercialization and investments, whose expansion was, respectively, 32.7% and 25.3%.
Of the total available funds for rural credit for the 2017/18 crop, 49% were already used, and 44.6% in the previous harvest. According to the SPA, the situation characterizes normality in meeting the demand of financing resources of rural producers.
The financing of costing reached R $ 52.3 billion, an increase of 3.4%. According to the Secretariat’s assessment, there was an underutilization of Mandatory Resources from demand deposits of commercial banks, whose availability for this purpose was significantly increased due to the exclusion of the possibility of using these resources to finance the storage of agricultural products by cereal companies and agribusiness.
The increase of 25.3% in loans for investments is an indicator of the resumption of agricultural investments, especially the programs for Reducing Emissions of Greenhouse Gases in Agriculture (ABC Program), which rose by 50.8%. Incentive to Irrigation and Production in Protected Environment (Moderinfra) plus 81.4%, for Construction and Expansion of Warehouses (PCA), of 98%, and Incentive to Technological Innovation in Agricultural Production (Inovagro), which was increased by 129 %.
Rural credit hirings, with funds from the issuance of Agribusiness Credit Letters (LCAs), increased from R $ 10 billion to R $ 14.4 billion, revealing the correct targeting of these to finance agriculture, as part of the efforts to increase funding (availability) of rural credit and diversification of funding sources.