The Brazilian government is tackling its economic recession by offering the country’s farmers and ranchers $8 billion in financing.
The program, which begins July 1, is intended to spur spending and investment in the agricultural sector. The government hopes farmers and ranchers will use the credit to purchase big-ticket items like farm machinery, which has seen softening demand due to low crop prices and other factors.
At John Deere, for example, “in South America, industry sales of tractors and combines are projected to be down 15% to 20% mainly as a result of economic and political concerns in Brazil," according to Deere’s second-quarter earnings release.
Brazil Bails Out Farmers Amid Financial Crisis