Brazilian President Dilma Rousseff yesterday announced the creation of a $10 billion fund to help small-scale agricultural producers maximize output and revenues during the 2011–2012 growing season. The fund, which was a major promise when Rousseff was campaigning for office, is targeted at rural family farms and is designed to curb poverty and reduce urban migration.
Brazil is currently the world’s largest producer of coffee, oranges and sugar and is one of few countries whose agricultural exports continue to grow rapidly. In addition to the small-farmer fund, Ms. Rousseff has also announced nearly $64 billion in government spending to support commercial farming nationwide. Family farms produce approximately 70 percent of Brazil’s total domestic food consumption and nearly 70 percent of rural Brazilians work in some capacity in the agricultural sector.
The announcement of the fund is consistent with decades of Brazilian government policy which, since the mid-1970s, has played an active role in supporting agricultural development.
For more on Brazil’s agricultural boom, check out the forthcoming AQ—coming out August 10, 2011—which includes a policy update on the topic.