São Paulo – The National Program for Strengthening Family Farming (Pronaf) should receive R$ 21 billion (US$ 10 billion) for the small-scale farming investment financing in the 2013/2014 crop. According to the announcement made by president Dilma Rousseff, and by the minister of Agrarian Development, Pepe Vargas, on Thursday (06), in Brasília, the volume of Pronaf funds is 16.6% greater than last year. In total, funds for the Family Farming Crop Plan, of which the Pronaf is part, total R$ 39 billion (US$ 20 billion).
The new rules allow farmers who had gross revenues of up to R$ 360,000 (US$ 180,000) last year to have access to Pronaf financing. The previous limit was gross annual revenues of R$ 160,000 (US$ 80,000). Interest rates will be 3.5%. In 2012 they were 4%.
Starting next month, farmers may obtain up to R$ 150,000 (US$ 75,000) in financing. Farmers in sectors with greater costs, like pork, poultry and fruit farming, will have a limit of up to R$ 300,000 (US$ 150,000). If the credit is requested by a group of family farmers, the limit rises to R$ 700,000 (US$ 350,000).
The Family Farming Crop Plan also forecasts R$ 400 million (US$ 200 million) for the Family Farming Insurance (Seaf) and over R$ 980 million (US$ 490 million) for small farmers inserted in the Pronaf who lose over 50% of production. The government has also increased the limits of the Food Acquisition Programme (PAA) and should expand price guarantees for over 50 products, like hulled long thin rice, yam and beans.
*Translated by Mark Ament
