Crop Plan Gains Support From Sugarcane Producers, But Interest Rates Cause Discomfort

Safra Plan Is Welcome, But ORPLANA Draws Attention to the Need for Equalization of Interest Rates

ORPLANA, the leading organization of sugarcane producers in Brazil and worldwide, attended the launch event of the 2023/2024 Safra Plan on Tuesday (27) in Brasília. The Federal Government announced the availability of R$ 364.2 billion to promote the national agricultural production of medium and large rural producers, marking a 26.8% increase compared to the 2022/23 program.

ORPLANA Evaluates the Plan Positively, Despite Concerns About Interest Rates

The entity acknowledges and supports the government’s initiative. “We are in a phase of vigorous and capital-intensive growth in agriculture. In this scenario, sugarcane and its producers consume large resources for their investments and to ensure an exceptional sugarcane harvest, thus contributing to Brazil’s growth. Therefore, this 26.8% increase in financial volume is good news,” points out Gustavo Rattes de Castro, president of ORPLANA.

However, the organization highlights the need for equalization of interest rates, which directly affect sugarcane producers. “We recognize the government’s efforts with this new Safra Plan, but the issue of interest rate equalization needs to be improved. Double-digit rates burden the producer,” emphasizes Castro.

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The Minister of Agriculture and Livestock, Carlos Fávaro, shares the same viewpoint and criticized the maintenance of the Selic rate at 13.75%, arguing that it is disconnected from the global reality and hinders the country’s development.

Sustainability and Environmental Conservation at the Focus of the Safra Plan

The 2023/2024 Safra Plan not only increased the financial volume but also encouraged sustainability by reducing interest rates for producers who adopt conservation and environmental preservation practices. “ORPLANA members will benefit from this innovation, as we rigorously prioritize sustainable practices in all production processes,” reports José Guilherme Nogueira, CEO of the entity, which represents over 700 thousand hectares of sugarcane cultivation in Brazil.

ORPLANA aligns with the guideline of Minister of the Environment, Marina Silva, that it is possible to boost production with a focus on sustainability. With this aim, the entity has invested in and developed projects that bring knowledge and education so that the preservation and enhancement of sustainable agriculture are increasingly incorporated by sugarcane producers in Brazil.