Brazilian President Luiz Inácio Lula da Silva has unveiled the 2024/2025 Safra Plan, a record-breaking agricultural financing initiative worth R$ 400.59 billion, marking a 10% increase from the previous year. The plan aims to support both large-scale producers and family farmers, with R$ 76 billion specifically allocated for family agriculture. This comprehensive plan also includes R$ 108 billion in Agricultural Credit Letters and additional resources for sustainability initiatives, totaling R$ 508.59 billion for the development of Brazil’s agricultural sector.During the launch, Lula emphasized the government’s commitment to fiscal responsibility while supporting the agricultural sector. He stated, ‘Food will become cheaper,’ and defended his administration’s approach to financial management, citing his ten years of experience as president. The President also highlighted the importance of technology in agriculture and the need to incentivize the sector’s growth.Finance Minister Fernando Haddad attributed the recent decline in the dollar’s value to ‘good communication’ from the government. The dollar closed at R$ 5.5684, down 1.70%, following statements from Haddad and Lula in favor of fiscal responsibility. This comes as a response to recent market turbulence and concerns over rising dollar values and inflation.Agriculture Minister Carlos Fávaro acknowledged criticisms from the agricultural sector but emphasized that the government is working to ensure agriculture remains a driving force in the Brazilian economy. The plan includes increased funding for Rural Insurance in flood-affected municipalities and aims to reduce production costs while increasing efficiency by 63%.Lula also addressed the relationship between the government and the agricultural sector, stating that he governs independently of ideology and will not ask entrepreneurs about their political preferences. He defended the inclusion of meat in the basic basket with zero tax and assured that the government will not freeze prices.
Key points
- Brazil launches 2024/2025 Safra Plan with R$ 400.
- The plan includes specific allocations for family farming and sustainability initiatives.
- President Lula emphasizes commitment to fiscal responsibility while supporting the agricultural sector.
- Finance Minister Haddad attributes recent dollar decline to improved government communication.
59 billion for agricultural financing, a 10% increase from previous year.
Contradictions👾While Lula emphasizes fiscal responsibility, he also promises increased spending and support for various agricultural initiatives, which could potentially conflict with strict fiscal management.
