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Agriculture Could Be Changing Agribusiness Financing and Rural Insurance

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The federal government is studying measures to modify the financing of activities in the field. They are in discussion to change the credit for production, to review the mechanisms of insurance for a guarantee of income for those who plant. There is also demand to enable the participation of the Ministry of Agriculture, Livestock, and Supply (Map) in the National Monetary Council (CMN). The minister, Tereza Cristina, has already signaled that she wants these changes.

In attending an event in Paraná on October 24, Minister Tereza Cristina defended that rural insurance is expanded, cheaper and have low-interest rates. “When they are with the production insured, producers do not lose sleep nor need to ask for renegotiation of debt with the non-saucer,” said the minister, adding that he discusses the matter with the current president of the Central Bank, Ilan Goldfajn and with Roberto Campos Neto, who will succeed him, and the vice president of Agribusiness of Banco do Brasil, Ivandré Montiel da Silva, according to information published on the ministry’s website.

Regarding the participation in the CMN, the minister has already said in interviews that she had “the daring to ask him [Paulo Guedes, Minister of Economy] to put the Map in a seat of the Monetary Council.” Next to the CMN works a consultative committee of rural credit.

The intention of the minister was well received by the Brazilian Agribusiness Association (Abag). “Size to play we have, but if we are going to be scaled I do not know”, said the director of the entity, Luiz Carlos Corrêa Carvalho. “Agribusiness is a sector that has very great relevance in the economy and for this reason, it would justify being close to such a council. Measures decided there can leverage or unnecessary locks. ”

The idea of having a place in the CMN also pleased Luís Carlos Guedes Pinto, former Minister of Agriculture (2006-2007) and full professor of the Economics Institute of the State University of Campinas (Unicamp). According to him, the ministry has already had seat in the CMN in the first years of operation.

The body, created in the second half of the 1960s, was composed of the Minister of Finance; president of Banco do Brasil; president of the National Bank for Economic and Social Development and “seven members nominated by the President of the Republic, after approval by the Federal Senate, chosen among Brazilians of unimpeachable reputation and notorious capacity in economic and financial matters.”