Lula announces US$86B crop plan for 2023/2024, largest in history

The Brazilian government, under President Luís Inácio Lula da Silva, is set to unveil the Harvest Plan for 2023/2024 on Tuesday.

With an estimated budget of R$ 424 (US$86) billion, it will be the largest volume of resources in the program’s history, surpassing the previous version launched by Jair Bolsonaro.

The significant size of the plan aims to cater to the agricultural sector, including ruralists who have been less supportive of the president.

During a meeting between representatives of the Agriculture and Livestock Parliamentary Front and Ministers Fernando Haddad (Economy) and Marina Silva (Environment), several proposals were presented to strengthen the two-year plan.

These include providing compatible interest rates for rural activities, enhancing rural insurance, storage, and marketing to stabilize commodity prices, and offering differentiated rates for producers practicing good environmental practices.

The Crop Plan focuses on promoting sustainable food production and low-carbon farming.

Most allocated funds will be directed toward funding and commercialization, while a smaller portion will be designated for investments.

It is expected that R$100 billion will be allocated for financing family and industrial agriculture, possibly surpassing previous years.

The financing rate for small producers is expected to remain at the current level of 6% per year.

Additionally, the plan aims to encourage sustainable practices, potentially reducing interest rates for certain operations.

The launch of the Crop Plan will be followed by the announcement of the Family Farming Plan on Wednesday.

The Ministry of Agrarian Development has already set aside R$70 billion for small producers.