Rural credit grows 19% from July to November to R$ 75.36 billion

With interest rates lower than for the previous harvest, the volume of rural credit facilities contracted by farmers grew 19% to R$ 75.36 billion. According to the Ministry of Agriculture, Livestock and Food Supply, this growth occurred in the first five months of the current season (July-November) compared with the same period of the previous harvest.

The Ministry has also announced that all rural credit lines have grown. Agricultural costing loans amounted to R$ 43.4 billion, 15% higher than the same period of the previous cycle. Disbursements for processing amounted to R$ 3.4 billion, a rise of 19%. On the marketing credit line, loans reached R$ 13 billion, an increase of 19%.

Investment loans totalled R$ 15.5 billion, up 37% from the last period. The resources were chiefly used for the acquisition of machinery and inputs, storage and infrastructure of properties. There was also great demand for a number of governmental initiatives, including the Low-Carbon Agriculture Programme, the Warehouse Construction and Expansion Programme (PCA) and the Inovagro (Incentive Programme for Technological Innovation in Agricultural Production).