Why the confusion of the crop plan can increase the price of food

by Andrea
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The confusion involving the Plan 2024/2025 It generates concerns about the impact on food prices.

except for the National Program for Strengthening Family Farming (Pronaf).

The measure was motivated by the “expressive” increase in spending on the equalization of interest rates and the delay in approving Annual Budget Law (LOA) of 2025 it.

In the scenario of inflation, the, which indicates a continuity in pressure on the Food prices.

The estimate of the Secretariat of Economic Policy (SPE) is that food inflation remains at a high level, repeating the 4.8% at the end of the year, as in 2024.

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Ibmec teacher and economist Márcio Sette Fortes points out that food inflation is not only the result of lack of financing, but also from factors such as adverse weather conditions, exchange rate variation and a heated demand.

However, he believes that a more robust financing could help fight inflation in the future.

“A more robust financing, such as a more powerful crop plan, is a very adequate tool that could generate positive results in combating food prices in the near future,” he said.

Specialist in Agribusiness and Family Farming, Corecon-SP delegate Adenauer Rockenmeyer, also highlights the importance of approving the approval of 2025 budget for continuing agricultural sector financing.

According to him, the non -approval of the budget part creates tax uncertainties and impairs the execution of the crop financing policy, impacting agricultural production and generating uncertainties about food supply in the market.

Rockenmeyer warns that the lack of an approved budget can extend the blockade of resources, limiting the ability of producers to invest in their operations, which could impact inflation and tax revenue generation.

“The lack of an approved budget can limit the effectiveness of measures [do governo] and the sector’s revenue generation capacity, which would even generate future tax revenues to improve the country’s fiscal situation. And it can also, due to this decrease in supply, have impacts on inflation, ”he said.

For FGV Agro Felippe Seirigati researcher, the Safra Plan has a limited impact on food prices, as it only covers a fraction of agricultural production and there are several factors that influence prices such as climate, pests and international events.

According to him, the sector developed creating financing alternatives, reducing dependence on official credit and, although a robust crop plan helps to guarantee production conditions, it does not prevent price fluctuations caused by crop breaks or external demand.

“You can have the best crop plan in the world, if you have a crop drop and, for example, miss beans, the beans will be more expensive. There’s nowhere to escape it, ”says Seirigati.

For him, more than credit, the sector needs a strengthened rural insurance: “In the environment of climate change, it is inevitable that we have crop falls more often. Rural insurance allows the producer to cross a bad year without compromising his ability to invest in the next cycle, ”he says.

After the negative repercussion of blocking the resources of the Safra Plan, o.

This Friday (21), Finance Minister Fernando Haddad announced that the government will forward an provisional measure (MP) to open an extraordinary credit of $ 4 billion and unlock the lines of credit of the crop plan 2024/2025.

To resume financing, but TCU’s decision is not yet certain.

However, according to the CNNsources of the agency indicate that the chance of the government to obtain authorization to release resources outside the budget is “close to zero”.

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