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June 6, 2019

Brazil's 2019/2020 Harvest Plan to be Released June 12th

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

The Brazilian Minister of Agriculture, Tereza Cristina, announced last week while attending the Bahia Farm Show, that the 2019/2020 Brazilian Harvest Plan would be released on June 12th and that it would follow the model of recent plans. The plan would take effect on July 1st and she indicated that the plan would be very similar to the plans of recent years.

The primary focus of Brazil's Harvest Plan is always subsidized low interest loans for crop production, equipment purchases, etc. Brazilian farmers are hopeful that they will benefit from recent trade disputes around the world and adverse weather in the United States. They are concerned though about a weak Brazilian currency which will increase their cost of inputs and higher freight rates could also cut into their profit margins. They are anxiously awaiting how much credit will be available from the government and at what cost.

The Bahia Farm Show, which is held in the city of Luis Eduardo Magalhaes in western Bahia, is the major farm show in North and Northeastern Brazil and the third largest farm show in Brazil in terms of sales volume. In recent years, northeastern Brazil has been a primary area for agricultural expansion in Brazil. The land is relatively cheap and it is closer to export facilities compared to land in central Brazil.