Fávaro: Lula will be well received at any agricultural fair – 06/27/2023 – Market

The Minister of Agriculture, Carlos Fávaro (PSD), said that, after the launch of the Crop Plan and new measures being elaborated by the government, the resistance of agribusiness in relation to President Lula (PT) will fall.

“Over the next six months, President Lula can be seen at any event, at an agricultural fair or at a rural union, and he will be very well received,” said the minister in an interview with Sheet.

“All those who manage to make this clear, transparent analysis of the moment we are living, already recognize that there is no need to be afraid, they know that it is a government that will help the agro as President Lula has always done”, he said.

A significant part of the ruralists supported the re-election of Jair Bolsonaro (PL). In April, the organization of Agrishow, in Ribeirão Preto, canceled the traditional opening ceremony of the event, after a conflict involving Fávaro, who said he felt “uninvited” after being informed that Bolsonaro would participate in the event.

In a ceremony at the Planalto Palace, this Tuesday (27th) Lula presented details of the 2023/2024 Crop Plan for large and medium-sized rural producers. This Wednesday (28), he should make the announcement to small farmers. The expectation is that, in total, the program will have a record volume of resources – close to R$ 430 billion.

Despite the government’s enthusiasm, agribusiness representatives are already criticizing Lula’s program.

For José Mario Schreiner, vice-president of the CNA (Confederation of Agriculture and Livestock of Brazil), the plan needs to be improved in terms of rural insurance, which helps producers to protect themselves financially against losses caused by natural disasters, drop in productivity, and other unpredictable events.

In addition, the criterion of requiring the CAR (Rural Environmental Registry) to grant an extra reduction in the interest rate is not, in his assessment, the most appropriate, because of the delay in issuing this certificate. “How can you exclude 80% of the producers when they are not at fault?”, he questioned.

The president of Aprosoja (Brazilian Association of Soy Producers), Antonio Galvan, asked for an increase in resources for the construction and expansion of warehouses and also pointed out a lack of funds for rural insurance.

“There was an expectation that the plan would have a little more resources, but we have to work with what we have. We need greater protection due to climate adversities or price crises,” he said.

The event in Planalto had low participation of parliamentarians from the ruralist group. The government argues that the launch of the plan took place in an empty week in Brasília, which will not have a session in the Chamber.

The Agricultural Parliamentary Front (FPA) was represented by vice-president Arnaldo Jardim (Cidadania–SP), who also joined the chorus for the reduction of interest rates.

“It is clear that interest rates could be lower, but we recognize that, with the maintenance of the Selic rate at 13.75%, it required that interest equalization [que permite juros mais baixos para o setor] be in a difficult situation. We recognize the government’s effort”, declared Jardim.

In response to the criticism, Fávaro informed that he is already studying a way to increase resources for rural insurance and asked that agribusiness reinforce, together with the government, the pressure for the Central Bank to reduce interest rates in the country.

“If we had lower basic interest rates, we certainly wouldn’t have more resources for insurance, lower interest rates in the Safra Plan. I would really like the sector to help us with the responsibility it has in charging the president of the Central Bank”, stated the minister.

For Fávaro, the perspectives for the relationship between agriculture and the government are good, because “as you work, make deliveries, recognize the importance of the sector, generate more opportunities and support in difficulties, certainly everyone will realize that there is a radical discourse of us against them and the Safra Plan is another big step in that direction”.

Lula said this Tuesday that his government is going to create a “shelf” of unproductive land so that there can be a policy of settlements before social movements invade rural properties.

During the launch of the Safra Plan, he also declared that, in order to have an agrarian reform in the country, “we don’t even need to have more land invasion”.

Agribusiness representatives praised the speech. Others, however, said the president only fulfilled his obligation.

Fávaro agrees with the idea of ​​making a bank of public land and idle land for the settlement of the landless. “You don’t need to have conflict for that.”

Galvan, who was one of Bolsonaro’s main supporters, believes that land reform, in this way, can be carried out peacefully. “This is one of the lines that are starting to catch on [com os ruralistas]. It has land to carry out a serious agrarian reform, with those who really want to produce”.