Brazil is in talks with international investors for funding worth 10 billion reais (2 billion dollars) before the end of the year at a time when the agrarian state is seeking to restore degraded pastures to increase the area of agricultural land.
The plan is to use the funds to grant loans to farmers starting in 2024, Roberto Perosa, Minister of trade and international relations at the Ministry of Agriculture, said during an interview on the sidelines of an industry conference held in Sao Paulo. He pointed out that the ongoing negotiations for financing include talks with sovereign funds, as well as other government entities in Asia and the Middle East.
Brazil’s goal for the next 10 years to recover 40 million hectares (about 99 million acres) of degraded pastures, or land previously used for grazing that is no longer productive, is part of the country’s plan to continue boosting its production of crops such as corn and soybeans while reducing deforestation in the Amazon. Europe recently banned imports of crop products from deforested areas.
The ministry recently indicated that the state-owned Saudi company for agricultural investment and animal production “Salik” was among the interested parties to contribute to the financing.
The Brazilian government is seeking resources that producers can borrow at lower interest rates than traditional credit lines according to Perosa. He has already planned more than 200 thousand plots that may benefit from financing. Noting that” Banco do Brasil ” (Banco do Brasil) can participate in the restructuring of loans to producers.
