Brazil's record $91.8 bil funding to boost agriculture, support global food security

Brazil's recent move to allot a record Real 440 billion ($91.8 billion) for domestic agribusiness financing in 2023 is expected to boost an already formidable agriculture sector, commodity analysts said.

Most of the fund will be allocated to boost credit financing for farmers and ranchers under the annual crop plan known as Plano Safra, President Luiz Inacio Lula da Silva announced June 27.

The financing under Plano Safra would also be used for enhancing farm infrastructure, such as storage facilities and irrigation systems, analysts said. With improved infrastructure, Brazil's farm sector is likely to produce and ship out larger volumes of crop.

The government's farm initiative is expected to help ease global food security concerns.

Once a small agrarian economy, Brazil has emerged as an agricultural powerhouse in recent years. Support from government policies over the past couple of decades, such as infrastructure investments and farmer-friendly financing programs, have aided the country's farm sector.

The South American country is now one of the world's leading suppliers of key agricultural products like soybeans, corn, sugar, beef, poultry, cotton, pork and coffee.