Brazil’s ‘Soy King’ Named New Ag Minister

Brazil’s Senate voted last week to suspend President Dilma Rousseff and put her on trial for breaking budgets laws. In the wake of the upheaval, Interim President Michel Temer appointed his new cabinet and named Blairo Maggi, the former “Soy King,” as his agriculture minister.

Maggi, who executed a last-minute change of parties to take the role, pledged not to change much, saying his predecessor, Katia Abreu, had done “a good job.”

Agriculture is one of the few sectors of the economy not in crisis amid the deepest recession in Brazil’s history.

“The priority is to take care of farmers and not let this sector, the most important in the economy, which is still doing well, to descend into where crisis and unemployment reign,” he told Folha de S. Paulo.

Abreu’s last major act as minister was to announce the official farm credit budget for the 2016-17 season. The government pledged to make available 202.8 billion reals ($59 billion) in credit, an 8 percent increase over last year. It remains to be seen how accessible the funds will be since the government is in dire fiscal straits. With commercial loans carrying interest rates of 25 percent or more, this subsidized credit is vital for growers.

Grain farmers have a powerful advocate in the ministry with Maggi’s appointment. Since becoming Brazil’s largest soybean farmer in the 1990s, his Amaggi group is now one of Brazil’s largest grain exporters.

Source: DTN/The Progressive Farmer S