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credit policy
The government according to the previous year's output value and farmers' land area of lending, small farmers and ranchers, the middle peasants can obtain the funds needed for the respectively 00%, 70%, and 55% of the loans and interest rates are also different in order to improve (2-3%). In order to ensure that small farmers can get a loan, the law requires all commercial Banks must have it the capital (deposit) are 25% in agriculture (called Exigiblldades). In ghd2000, for example, the 3.75 billion reais rural credit funds comes from the 7.2 billion a, accounted for 5%. From the use of loans to see, 8.927 billion used for liquid funds, 2.3 billion for investment, 2.52 billion for marketing loans. Since 996, the marketing loan (loan) that is growing fast, from 996 in 386 million to over 2000 in 2.52 billion, and investment loans from 996 in .5 billion to over 2000 in 2.3 billion, working capital loans from 996 in 4.39 billion to 8.927 billion growth. Credit funds guarantee the growth of rural economic development need money.
(2) price support policies
() the products sold plan (PEP)
The purpose of the program is the government through processing enterprise or wholesalers to pay "price difference" subsidies way to support agricultural prices. "price" means the market price and the government's reference price. The difference between the reference price can be an official the lowest price, also can be in the option contract set ghd south africaprice. In fact the government provides producing area and is equivalent to the consumption of freight between western farmers of subsidies. The products to offer to the south of the processing enterprise or wholesalers, the government will be the difference between the two places (mainly freight) subsidies to the latter, and thus encourage them to inland areas to purchasing agricultural products, thus for inland areas to provide farmers price support. The plan is limited, only for the amount of output, the government through 5-6% auction way to divide the quotas, subsidies amount provided in the line, the subsidy is not. Real operation has three crops benefit from it cotton, corn and wheat. In 2000, PEP subsidies amount 76.5 million reais, of which 57 million reais cotton, corn 9.5 million reais.
