Government prepares aid package for producers affected by drought

The federal government is preparing an aid package for rural producers who suffered losses at the beginning of the year due to droughts in the South and Center-West regions.

The measures, which involve the offer of financing lines and the transfer of rural technology, are being prepared by the Ministry of Agriculture.

They also undergo evaluation by the Ministry of Economy and the Central Bank, responsible for confirming the opening of credit.

The damage estimated by the federal government due to the lack of rain is so far around R$ 47 billion, especially in the production of soybeans, corn and beans.

To prevent small producers from abandoning their crops, the government’s plan is to transfer an amount of R$ 450 million to Pronaf (National Program for the Strengthening of Family Agriculture), which is focused on production costing.

The idea is also to resume rural hiring under the Safra Plan, which had credit lines suspended due to the increase in interest rates. For this, the program needs a contribution of around R$ 2.9 billion.

In addition to the greater supply of credit, the federal government is evaluating technology transfer programs for small producers, such as the distribution of seeds that are more resistant to drought and the construction of small dams to contain rainwater.

The expectation is that the agricultural package will be made possible by the end of March. In Rio Grande do Sul alone, around 115,000 grain producers and 23,500 milk producers were affected by the drought.

This Thursday (17), the minister of Agriculture, Tereza Cristina, is on her agenda in Iran. The objective of the trip is to increase the commercial partnership in the import of urea. The Brazilian government has tried to prevent the worldwide shortage of fertilizers from affecting Brazilian production.