Lula sets up operation to try to contain crisis with agro

The Minister of Agriculture, Carlos Fávaro, started an operation to try to overcome the crisis in the government of President Luiz Inácio Lula da Silva (PT) with agribusiness. PT management had already been facing resistance from the sector, but the wear and tear was accentuated in recent days, after ministers threatened to cut Banco do Brasil’s sponsorship of Agrishow, the largest agricultural fair in Latin America.

The Agrishow started this Monday (1st) and continues until next Friday (5th), in the city of Ribeirão Preto, in the interior of São Paulo. 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).

With the absence of the Lula government at the opening of the event, the former president’s participation and speech sparked an alert among members of the Planalto Palace. Surrounded by supporters and the governor of São Paulo, Tarcísio de Freitas (Republicans), Bolsonaro defended that “the agro needs politicians who don’t get in the way”.

After the repercussions of Bolsonaro’s participation, Fávaro moved to reduce Lula’s distress with the sector. This Tuesday (2nd), the Minister of Agriculture met with the Agricultural Parliamentary Front (FPA) to establish a bridge with agribusiness representatives. The meeting, which lasted about four hours, was Fávaro’s first with this group since the beginning of Lula’s government.

At the end of the meeting, Fávaro denied that the federal government had promoted cuts in the sector and defended the expansion of resources. The minister mentioned, for example, the release of the credit line in dollars with a fixed rate made by the National Bank for Economic and Social Development (BNDES).

“There is, under no circumstances, any withdrawal of investment. On the contrary, the R$ 2 billion [da linha de crédito em dólar] have already been taken and now we are going to provide more resources. We are already providing more resources, so that we can encourage the growth of agriculture”, defended Fávaro.

The president of the FPA, deputy Pedro Lupion (PP-PR), stated that Fávaro’s visit showed the minister’s “good will” to establish a bridge with the agribusiness sector. “We left the gossip and intrigue aside. What we wanted was to be able to discuss important topics for the agro and at this meeting we talked about different sectors, from rubber to milk. That is, specific topics from different sectors”, stated Lupion .

Still according to the congressman from Paraná, the minister committed himself to being the sector’s “bunker” alongside the Lula government. “I heard from the minister with all the letters, publicly through the microphone, that the FPA guidelines will be supported and defended by his ministry. This is effectively what we need, to have the Ministry of Agriculture as our “bunker” within the government” , added Lupion.

Despite the nods from the minister, the president of the FPA stressed that, so far, the PT administration has not shown appreciation for agribusiness. “Our objective is to strengthen the Ministry of Agriculture. During all the PT governments we had ministers aligned with the FPA. But this government has shown, from the beginning, a very bad feeling in relation to agriculture”, said Lupion.

“It is obvious that we are extremely concerned. It is the month of May, but it has been five intense months of defending our sector against constant attacks. that unfortunately the government has not shown any appreciation to our sector”, completed the president of the FPA.

Sponsorship maintained for Agrishow and possible announcements to the sector

After Fávaro withdrew from going to Agrishow, ministers in the Lula government even publicly defended that Banco do Brasil cut its sponsorship of the event. In addition to the minister’s absence, the president of Banco do Brasil, Tarciana Medeiros, also canceled her participation in a lecture on the schedule.

“Discourtesy and change of character from an institutional event for the promotion of agribusiness to an event with political and ideological characteristics. Either it is a plural and non-partisan business fair or it cannot be publicly sponsored”, defended the minister of the Social Communication Secretariat of the Presidency of the Republic, Paulo Pimenta.

Despite this, Banco do Brasil reported that it maintained its structure at Agrishow through its commercial activities to carry out business and serve its customers. There is a bank stand and various banners and advertisements scattered around the fairgrounds. And dozens of employees from the federal institution continue to work with the producers. BB stated that the expectation is to generate R$ 1.5 billion in business throughout the entire event.

Banco do Brasil is one of the main promoters of agribusiness in the country and in the last 2022/2023 harvest released R$ 154 billion in credit for the sector.

In an attempt to mitigate the effects of the crisis with agro, one of the options aired by the PT government is to support, for example, the return of the National Supply Company to Fávaro’s portfolio. (Read more below.)

In addition, Lula intends to announce in the coming weeks the amount of credit for financing the Safra Plan. The amount has not yet been announced, but the PT intends to boost the credit line as a nod to agribusiness.

“President Lula keeps telling me: ‘Fávaro, bring the agro here for a meeting, I want to know what I need to do to be closer to him’. I will not lack political support from President Lula, he respects the agro a lot”, said Fávaro during the meeting of former Ministers of Agriculture promoted last week, in Brasília.

Minister compares MST invasions to January 8 acts; movement will have a vacancy in the “Conselhão”

In a new attempt to nod to the sector, Fávaro used the FPA meeting to criticize land invasions carried out by the Landless Rural Workers Movement (MST). According to the Minister of Agriculture, the movement’s actions can be compared to acts of vandalism on January 8 in Brasilia.

“The right to a piece of land is legitimate, a national plan for agrarian reform is legitimate within the rigor of the law. Anything that exceeds rigor, I do not support. I consider the invasion of productive land as harmful as the invasion of the National Congress ”, declared Favaro.

Despite this, the MST continues to gain more space in the PT administration and will be part of the Economic and Social Development Council of the Presidency of the Republic, the so-called “Conselhão”, at Lula’s invitation. The information was released by the Minister of Institutional Relations, Alexandre Padilha, on his social networks, this Saturday afternoon (29). The council advises the President of the Republic in formulating public policies. The invitation was accepted by the landless leaders.

The federal government is the target of criticism for its proximity to the MST. Criticism comes especially from agribusiness representatives, who condemn the recent invasions of rural properties promoted by the movement across the country. These actions may be the target of the MST’s Parliamentary Commission of Inquiry (CPI).

Conab is the target of dispute between ministries of the Lula government

Fávaro has argued that “there is no Ministry of Agriculture without Conab [Companhia Nacional de Abastecimento]”. Currently, Conab is linked to the Ministry of Agrarian Development (MDA) and is the target of an intense internal dispute in the Lula government.

The matter should be resolved by Parliament during the vote on Provisional Measure 1.154/2023, which restructured the Esplanada dos Ministérios. Fávaro asked for support from the agribusiness group in Congress, so that the state-owned company returns to the Ministry of Agriculture.

“What is fundamental and I speak with great transparency is that there is no Map [Ministério da Agricultura] without Conab, without support for the public marketing policy”, he told parliamentarians and representatives of agribusiness entities.

Fávaro said that he is not “conspiring against the government” and that his position is very clear on the importance of the supply company being linked to his ministry.

In addition to Agrishow, the Lula government was absent from other agro fairs

After Fávaro’s meeting with the FPA, the Minister of Agriculture met with President Lula at the Planalto Palace to present an assessment of the agro-agribusiness crisis. In recent weeks, the PT has increased demands on the head of the portfolio for a closer relationship with the sector.

In addition to the absence at Agrishow, no federal government representative was present at the main agro event in the Midwest, in Rio Verde (GO), in March, when more than R$ 11 billion in agricultural machinery and implements were sold.

The PT government was also absent at the opening of Expozebu, in Uberaba, in the Triângulo Mineiro, this Saturday (29), at the largest zebu cattle fair in the world, which expects to move R$ 350 million in business until the 7th.