BRASILIA (Reuters) – Brazil could double spending on subsidized farm insurance in 2020 and may expand subsidized loans, the country’s agriculture policy secretary said on Thursday, even though the new government’s economic team has pledged to cut spending.
The negotiations on next year’s farm subsidies highlight the powerful agribusiness lobby’s struggle to preserve benefits at a time when Economy Minister Paulo Guedes is pushing for belt-tightening efforts including cutting state-subsidized loans in favor of lending on the open market.
State-run - Banco - Brasil - SA - Farm
State-run Banco do Brasil SA, responsible for handing out many of the subsidized farm loans, favors cutting that lending and offering favorable insurance instead, Chief Executive Rubem Novaes said last month.
But while subsidized insurance payments are expected to rise, that will not correspond to a cut in subsidized loans for the next crop year, Agriculture Policy Secretary Eduardo Sampaio Marques said in an interview with Reuters.
Rupture - Movement - Sense - Rationalization - Modernization
“There will not be a rupture, but movement in the sense that there will be more rationalization and modernization with less state intervention,”...
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