Brazil's 2026/27 agricultural Safra Plan will provide 525.1 billion reais ($101.50 billion) in financing for medium and large-scale farmers, 9 billion reais more than in the previous crop cycle, the Agriculture Ministry said in a statement on Tuesday.
The plan is designed to bolster Brazil's agribusiness sector, a key driver of the country's economy. It comes as President Luiz Inacio Lula da Silva prepares to seek a fourth non-consecutive term as president in October.
One of the main changes in the 2026/27 plan is a reduction in maximum interest rates on strategic credit lines for commercial farming, the ministry said. For medium-sized producers, the maximum rate was cut to 9% per year from 10% in the previous crop cycle.
Late on Monday, newspaper Estadao reported, citing an interview with Agriculture Minister Andre de Paula, that the plan would total around 610 billion reais, including credit to family farming. That has not yet been disclosed by the ministry.
According to the report, the total amount fell short of the agribusiness sector's request, which was for between 623 billion and 674 billion reais.
The government is set to formally launch the plan at a ceremony later on Tuesday. The Agriculture Ministry did not immediately respond to a request for comment regarding remarks in the interview with Estadao.
($1 = 5.1733 reais)