A new vision for agriculture
momagri, movement for a world agricultural organization, is a think tank chaired by Christian Pèes.
It brings together, managers from the agricultural world and important people from external perspectives,
such as health, development, strategy and defense. Its objective is to promote regulation
of agricultural markets by creating new evaluation tools, such as economic models and indicators,
and by drawing up proposals for an agricultural and international food policy.
A look at the news

A new increase in Brazil’s farm budget

24 Juin 2013


The Brazilian Government recently announced it is hiking the farm budget by 18 percent to 136 billion Reals (approximately $68 billion). The new financing by the Dilma Rousseff Administration seeks to guarantee “a significant increase in production levels.” Accordingly, farmers will get subsidized loans with easier access to credit and lower interest rates, private warehousing capacity will be boosted with newly built silos, and financing will be earmarked for agricultural innovation.

This farm budget hike occurs while large social protests are taking place––on June 18, 250,000 Brazilians took to the streets–– in an environment of declining growth and critical inflation risks.

In this context, the Brazilian agriculture seems to be playing a key position. With a 9.7 percent growth rate in the 2013 first half, it is the key driver for the country’s GDP (+0.6 percent during the same semester). Driven by historical soybean and grain crops, agriculture is posting its stronger growth since 1998, and generates a €20.8 billion value creation according to IBGE, Brazil’s Institute of Geography and Statistics. Grain output is estimated to reach 184.3 million tons, a 10.9 percent increase over the 2011-12 crop. Soybean output is also growing by 22.4 percent over the 2012 crop.

This new revaluation of the farm budget––the sixth successive increase in 10 years––is additional proof of the strategic and specific significance of Brazil’s agriculture as a driver for power and a component for political and social balance. We are indeed very far from the model of a Brazilian agricultural sector that was fully free from any trade restriction, and benefiting from the sole advantages of its countryside and the mettle of its farmers…

We are closely monitoring these developments, since Brazil’s SGPA––the Global Support to Agricultural Production indicator designed by momagri––tends to rise regularly (+60 percent between 2005 and 2010) and is bound to exceed the European Union’s SGPA per capita.

Although limited by serious logistical drawbacks––lack of infrastructures and practicable roads––Brazil has become the “world’s farm” in about 30 years. The country is the world largest coffee, sugar and orange juice exporter, and seeks to remain competitive.

Yet, if we take a closer look, the country’s social balance is faltering, especially in the agricultural sector. At the very time when large protests are rattling the country, what would happen if farmers were also deciding to march?
Page Header
Paris, 18 December 2018