Half of Brazilian Farmers Are Having a Hard Time Repaying Their Loans

A study released today by the Brazilian Confederation of Agriculture and Livestock (CNA) affirms that the incomes of half the farmers are entangled with repaying loans obtained to cover operational expenses.

The study, which was conducted in May, is based on interviews with 2,298 farmers from around the country to gauge the dimensions of the rural credit crisis.


According to the study, 10% of the interviewees have more than 60% of their gross income tied up in loan payments. Only 11% were successful in renegotiating their debts with banks on loans to cover operational expenses.


Another 12% who attempted to renegotiate their debts on loans for investment purposes obtained extensions of the debt repayment period.


The study also found that 49.2% of the farmers tried to obtain loans for operational expenses in the most recent harvest, but only 8% were able to get all the financing they needed at an 8.75% annual interest rate. The rest were forced to accept loans at higher interest rates.


ABr

Tags:

Ads

You May Also Like

Brazilian Premium Coffee Gets a Home in California

Limoneira Company, a 112 year-old Santa Paula land, farming and food company, is bringing ...

Polls Keep Showing Brazil’s Lula Will Make His Successor on October 3

Chances seem dimmer every passing day for the opposition in Brazil. With only three ...

Scotland Yard Settles with Family of Brazilian Mistaken for Terrorist and Killed

Jean Charles de Menezes's family has agreed on a compensation deal with the London ...

How Arabs Helped and Continue Shaping Brazil’s Culture and Trade

Shopping in Brazil before the late 19th century meant facing a Portuguese immigrant, almost ...

Brazilians Fear Chavez Will Bring Trouble to Mercosur

Venezuela’s incorporation to Mercosur scheduled for this week’s presidential summit in Montevideo, Uruguay, is ...

Eco-friendly American Company Hired to Support Power Plants in Brazil

Ecology and Environment do Brasil (E & E), subsidiary of a company headquartered in ...

Brazil Summit to Discuss Bolivia’s Full Membership in Mercosur

Diplomats of the Gulf Cooperation Council (GCC) arrive today in Rio de Janeiro to ...

Market Diversification Boosts Brazilian Exports

Exports shipped to countries such as Trinidad and Tobago, Poland, and Algeria, with which ...

Does Brasília Matter? A Close Look at Rhetoric and Reality in Washington

The revelation that the U.S. National Security Agency has been reading the text messages ...