New Government Plan To Increase Credit Access In Midst Of Rate Hikes

BMI sees upside production risks for Brazil's agriculture industry, after President Luiz Lula da Silva announced an 8% increase in rural credit availability for 2010/11 for the agricultural sector. Known as the 'Harvest Plan', the increase in credit will be worth approximately US$54bn dollars and could see agricultural production levels grow even beyond our current projections. Farmers cash-strapped from massive export decreases due to the global economic downturn will have more available funds to increase production. Encouraging them to expand output will be increased stock capacity afforded by the government's building of new silos, another outcome expected from the increased

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