Cotton farmers are gearing up to submit a proposal for emergency support to the federal government soon.
This move came from a special session of the Cotton Sectoral Chamber last Thursday.
Led by the Brazilian Cotton Producers Association (Abrapa), the initiative seeks to lessen the blow of recent crop failures due to harsh weather, notably influenced by El Niño.
Complicating matters, significant drops in the market prices for Brazil’s main crops have cut into farmers’ profits.
Data from Esalq/B3 shows declines in soy, corn, and cotton prices by 28%, 24%, and 25%, respectively, since last year.
Abrapa’s president, Alexandre Schenkel, highlighted the need to avoid default and maintain access to essential farming credit.
He emphasized that the proposed measures aim to shield consumers from the fallout, affecting not just apparel but also food supply chains reliant on soy.
The farmers’ plea includes a call for emergency credit lines for large-scale operations to prevent default on existing loans. They also seek loan extensions with competitive rates.
Furthermore, they stress the importance of funding the Minimum Price Guarantee Policy (PGPM) to stabilize income for farmers, along with enhancing subsidy programs.
The discussion also turned to crop insurance, whose dwindling coverage and effectiveness have raised concerns among farmers.
Schenkel urged increased funding and reevaluation of insurance models to bolster agricultural policies, encouraging relevant product development.
This concerted push by cotton farmers underscores their drive to navigate current challenges and secure a stable future for their sector.
More: Brazil news in English, every day from The Rio Times.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error