The Brazilian government has offered more aid to indebted soyabean and other farmers, the agriculture ministry said. It follows farmers' rejection of a 13 percent increase to 50 billion reais ($22 billion) in 2006/07 commercial farm credits announced by the government on May 25.
Farmers, notably in the key center-west soya region, blocked roads and railways in May, demanding extra government aid. Farmer debt soared in the past two years due to drought, increased fuel and fertiliser costs plus a sharp decline in the dollar against Brazil's real currency, which eroded export earnings.
The government said in a statement late on Wednesday it raised the amount of debt that could be rescheduled and further reduced interest rates on some credit lines.
Wheat, sorghum and manioc farmers may also now automatically extend part of their debt. Soyabean producers in southern and south-eastern Brazil can now extend 55 percent of their 2005/06 debt, compared with 50 percent previously. Corn farmers throughout Brazil may extend 35 percent of their debt, against 20 percent previously.
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