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the option contract on subsidies (contracts)
Equivalent to a price guarantee system. Now for a certain period (such as the option price after half a year), but to buy the insurance. If buy the insurance expires, when actual prices higher than the option prices, the farmers themselves sells; When the market price lower than options expire actual prices, the government directly to the market price and the ghd south africadifference between the option price supply farmers, still the peasants themselves. Such sales has two functions one is to some extent the farmers' income, 2 it is to ensure that the government can reduce the direct purchase price of the formation of the reserves. But, as the market prices are often higher than the price is high, the actual option with not a lot of people this way.
(3) agricultural insurance policy
Limited to the country's financial and imbalance between agricultural insurance development, mainly in the more developed regions. Brazil's agriculture insurance has the following characteristics the central bank by the federal sole responsible for agricultural insurance, other Banks only as a proxy. BeiGeng points, planting, management and sales and other four stages and extend credit insurance (agriculture synchronization). Insurance scope to the cost of production for limit. Government and farmers their burden of 50% of the insurance gold, promote farmer through to agricultural insurance way to reduce the risk of agricultural production. This indirect assistance method, has yet to be fully promotion, the reason is that the current farmers still 2% of the insurance rate is too high.other support policies
() to solve the debt crisis of farmers
Since 995, the Brazilian government has taken some measures to solve the debt ghd hair straightenercrisis of the farmers problem. One of the important measures through the form of legislation is allowed to expire (June 995) can't pay the debt of the farmers can continue to negotiate with lenders delayed payments. Farm debt in 200000 reais ($00000) of the following, may be extended for 0 years in loans, and the interest rate by 3% and the government's specific commodities minimum price rate; Debt in 20-500000 reais, between the extension 20 years and the interest rate payments for 8% plus price index (the variation rate of the General index); the Prices Debt in 50- million reais for 9% annual interest rate of between, and price index rate; Debt in more than million reais and the interest rate is 0% and price index rate.
