Lula minimizes disagreement with agribusiness and seeks support against BC

President Luiz Inácio Lula da Silva (PT) used the launch of the Crop Plan, on Tuesday (27), as yet another attempt to get closer to agribusiness, one of the sectors most resistant to the PT government. In addition to nods, the government tries to attract the strength of agro to the dispute against the Central Bank in the discussion about the interest rate in Brazil. The petista has been pressuring the president of the Central Bank, Roberto Campos Neto, because of this since the beginning of the government.

Even before the launch of the Crop Plan, the Minister of Agriculture had already signaled that the productive sector should not wait for lower interest rates given the Central Bank’s stance on maintaining the Selic rate. Now, Fávaro defended that agribusiness be more “forceful” in charges against the institution commanded by Campos Neto.

The minister pointed out the drop in the dollar and the negative impact on imports, which ends up generating less revenue for the agro. “Many sectors of the agro are already demonstrating against the interest rate and I am sure they need to be more forceful. The agro needs to demonstrate for the sake of survival”, defended Fávaro.

In addition, on Tuesday (27), the Economic Affairs Committee (CAE) of the Senate approved an invitation for Campos Neto to provide clarifications to the House.

“One of the goals of the Central Bank is to work on controlling inflation. This is going very well. The economic policy is going very well. What is the point of having a basic interest rate, the Selic, of 13.75%? What does he think about jobs, what does he think about the development of this country? Who approved his name was the Federal Senate. And, by approving him, it was on these bases and on this commitment. Favaro.

Lula’s nods to the agro with Plano Safra

In his speech, Lula said that the government is not “a club of friends” and that anyone who thinks that “the government will do more or less because it has problems or not with agribusiness” is wrong. “We are a government with people from different parties, ideologies and histories. Those who think that the government thinks ideologically when dealing with a Crop Plan are mistaken. the hatred between people. This country will only succeed if everyone wins”, argued the petista.

This year, the government reserved the amount of R$ 364.22 billion for financing large and medium-sized rural producers in the country. This Wednesday (28), the amount of R$ 77 billion for small farmers was announced. According to the Minister of Agriculture, Carlos Fávaro, this division occurred because of the structural division of the Executive, which also has the Ministry of Agrarian Development and Family Agriculture, commanded by Paulo Teixeira.

“The robust Safra Plan is part of our government’s slogan, which is unity and reconstruction. Unity is a Brazil for all, regardless of who voted, the union will bring a happy, prosperous country. This is the goal, the request and President Lula’s wish. So this Crop Plan with record value is another step towards this rapprochement with [o agronegócio]”, admitted Favaro.

President of the Brazilian Association of Cotton Producers (Abrapa), Alexandre Schenkel, sees Lula’s attempt to approach the productive sector as natural. According to him, the government needs to have a vision of respect regardless of people’s political choices.

“This issue of getting closer is natural. We have to have this closeness with the government. The productive sector is a sector that today is very efficient and this efficiency is given to many people who are working with agriculture. People have their own choices [políticas], but we have to work together. I think Brazil is one and we cannot divide Brazil”, said Schenkel.

The Planalto event, however, took place with low participation by parliamentarians from the agribusiness bench. The government’s justification was that the launch of the plan took place in an empty week in Brasília, which will not have a session in the Chamber.

Still in the rapprochement strategy, Lula’s allies defend that the PT maintains the nods to agribusiness. The assessment of Planalto organizers is that the latest signs are already causing a reduction in the sector’s resistance against the government.

Before launching the Safra Plan, Lula said, for example, that he asked the Ministry of Agrarian Development and Family Agriculture to list all the land considered unproductive in the country to support a plan for the settlement of landless families. The objective, according to him, is to put an end to the invasions led by the Landless Workers Movement (MST).

“Instead of people invading, we offer [as terras], organize. This is something new that I did not think about in the first and second terms. I thought now, and let’s do it”, said Lula.

According to Deputy Arnaldo Jardim, Lula has sought to give signals in an effort to bring the sector closer together. “I think that Lula’s statement that there is no need to invade land in Brazil and that this is a government that works for the development of agriculture were very important. I thought that both statements were very timely and a good sign for good coexistence in the sector with the government,” said the vice-president of the FPA.

Agro questions interest rate for the financing of Plano Safra

The vice-president of the Confederation of Agriculture and Livestock of Brazil (CNA), José Mário Schreiner, stated that “the volume of resources is quite expressive”. “The CNA travels throughout Brazil and meets the main demands of rural producers. The amount is in line with what we had formulated and suggested to the federal government”, he said.

Schreiner, however, said that the plan needs to be improved in the rural insurance part, which helps the producer to protect himself financially against losses caused by natural disasters, drop in productivity, and other unpredictable events.

In a note, the Agricultural Parliamentary Front (FPA) “recognized the effort of the federal government in the constitution of the new Crop Plan”, however, questioned the “amount destined for the equalization of interest rates”.

“The big question is still the amount destined for interest rate equalization, an amount that actually enters the account to offer lower interest to rural producers. The FPA requested a volume of around R$ 25 billion to guarantee the necessary operations, but we still don’t know what the value closed by the federal government”, demanded the FPA.

Present at the Planalto event, deputy Arnaldo Jardim (Cidadania-SP), vice president of the FPA, reinforced the sector’s desire for differentiated rates. “We would like to evolve more in the interest rate, but we recognize that with the Selic rate at 13.75% this would require a resource for very sharp interest equalization”, argued Jardim.

Expenses with the agro

Lula’s nods to agro have occurred after a series of facts that have caused wear and tear with agribusiness. One of them occurred when ministers threatened to cut Banco do Brasil’s sponsorship of Agrishow, the largest agricultural fair in Latin America, which did not happen. Traditionally, the Minister of Agriculture always participates in the opening of the event, but Fávaro canceled his trip after the organizers invited former President Jair Bolsonaro (PL).

Days later, Lula referred to the Agrishow organizers as “some fascists, some denialists”. He stated that the organizers of the event “did not want” the Minister of Agriculture, Carlos Fávaro, to participate. “He [Carlos Fávaro] he is not a small producer, no, he is a great producer. He is my minister. There is the famous agriculture fair in Ribeirão Preto that some fascists, some denialists did not want him to go to the fair, they did not invite my minister “, he said.

Lula’s information was inaccurate. The invitation made to Fávaro was not withdrawn by the exhibition. But he decided not to attend after the president of the fair, Francisco Matturro, suggested that he not come to the opening of the event, when former president Jair Bolsonaro would be present.

Afterwards, when addressing the Bahia Farm Show, in Luís Eduardo Magalhães (BA), Lula said: “I want to say that I come to this fair just to make the bad characters of São Paulo envy who did not let my minister participate”, said the president.

In addition, the presence of ministers from the Lula government at the Landless Workers’ Movement (MST) Fair in May, in São Paulo, also did not resonate well with representatives of the sector. Paulo Pimenta (Secretary of Social Communication), Luiz Marinho (Labour) and Márcio Macedo (Secretary-General) were at the fair.