President Luiz Inácio Lula da Silva on Tuesday announced the biggest-ever Harvest Plan, which offers subsidized credit to large and middle-sized agribusiness companies. The 2023-2024 edition will offer BRL 364 billion (USD 76 billion), a nominal 6-percent increase from the last cycle.
The Harvest Plan’s interest rates range from 7 to 12.5 percent, much lower than the country’s benchmark rates, currently at 13.75 percent. Rates are even lower for more environmentally-minded farms, such as those employing livestock tracking, renewable energy, or bio-inputs.
This year’s edition increased by 61 percent the credit available for building large agricultural warehouses of over 6,000 tons — with an eye towards increasing Brazil’s storage capacity.
The agribusiness sector single-handedly drove Brazil’s Q1 2023 growth — and the federal program for subsidized credit plays a vital role in Brazil’s agricultural policy.
Senate President Rodrigo Pacheco attended the ceremony announcing the plan at the presidential palace and was placed next to President Lula.
Mr. Pacheco is rumored to be on Lula’s shortlist for his next Supreme Court nomination — there will be another vacancy later this year with Chief Justice Rosa Weber’s upcoming retirement.
While the relationship between the government and House leadership has been one of mistrust, the government has had a much easier time in the Senate.
During the launch of the Harvest Plan, Environment Minister Marina Silva thanked Mr. Pacheco for his “important contributions” to environmental legislation. The House, meanwhile, has moved to limit access of indigenous peoples to their land — passing a bill narrowing the criteria for what is considered a protected territory. The bill has yet to be analyzed by senators.
House Speaker Arthur Lira did not attend the ceremony as he is on a trip to Portugal. He spoke yesterday at the Lisbon Legal Forum, an event organized by a college owned by a Supreme Court justice and which attracts dozens of Brazilian power brokers every year. Mr. Lira’s trip postponed discussions on tax reform, one of the government’s legislative priorities for the year.
Search
