Brasília – The Brazilian rural credit system is the most effective in the world and is attracting the attention of countries in the Americas and in Europe, which are seeking knowledge about the methods used by the government to support the sector, said the Brazilian minister of Agrarian Development, Guilherme Cassel, last week.
In an interview to radio show "Revista Brasil," broadcasted by the Rádio Nacional station, the minister said that, according to figures disclosed by the Brazilian Institute for Geography and Statistics (IBGE), which should be consolidated by September, the number of rural properties has grown by 350,000 in recent years. According to him, this has led to decreased rural exodus, "because people are now doing the opposite, they are going back to the countryside."
To Cassel, the notion that rural areas are delayed no longer applies, and farmers now count on technical support and credit. The minister also highlighted concern with actions in the social and infrastructure areas.
According to him, rural properties used to have an average of 73 hectares. Presently, the average area is 68 hectares, with less land concentration and more people working. More than 520,000 families were settled over the last few years, which translates into around 1 million people, according to the minister.
"Settlement goals are not the sole aspect to consider, because first there must be a planning for adequate housing, technical assistance, offering credit at the right time, supplying water, light, and implementing schools for workers to have good living conditions. We are promoting a responsible, productive and environmentally conscious agrarian reform," he stated.
Rural credit is granted by the Bank of Brazil, the Bank of the Amazon and the Bank of the Northeast, explained Cassel. According to the minister, funds are being cleared rapidly, allowing for farmers to work efficiently. The insolvency rate, according to him, is the lowest in the Brazilian credit sector, with rates below 3%.
Cassel also said that warehouses and supermarkets are going to start selling family farming products, which are going to bear a label. He stated that the National Program for Strengthening Family Farming (Pronaf) is responsible for 70% of agricultural production in the country and that, with the label, the population will be able to know that it is buying healthy products originated from a sustainable production system.
The minister also said that family farmers are responsible towards the environment. "They are aware of the fact that if they do not treat the springs well, they will be damaging their own business,” he explained. "In agriculture, there is no need to cut down trees in order to produce more food. We have strict, modern and adequate environmental laws, and we must observe them properly, because preserving the environment is the great challenge of our times," he added.
Guilherme Cassel also stated that family farming is going to receive 15 billion Brazilian reals (US$ 7.9 billion) for the next crop, whereas the figure was 13 billion reals (US$ 6.8 billion) last year. According to him, the funds are available at the banks since July 2nd.
Access to credit enables the modernization of properties, enabling farmers to buy more tractors, machinery and equipment. Families may make loans of up to 100,000 reals (US$ 52,800), to be paid over ten years. The annual interest rate will be 2%, with the first payment due after three years.
*Translated by Gabriel Pomerancblum
