Brazil increased the availability of a special credit line to corn growers as the government seeks to encourage planting amid competition from soybeans, Deputy Economic Policy Secretary Joao Rabelo said today.
Brazil is concerned that a poor output in the summer corn season, which competes directly with soy for acres, may drive up prices, damaging pork and poultry producers that use feed made from the grain, he said.
“Corn is at a price that makes it very attractive for growers now,” Rabelo told reporters today in Brasilia. “The reality is that soybean is way more profitable for farmers,” he said.
Farmers will have access to as much as $395,000 in credit at below-market interest rates to cover the costs of producing corn, up from $247,000 previously, Rabelo said.
Corn prices have increased 26 percent this year, while soybean has climbed 42 percent, according to data compiled by Bloomberg.