Brazil can increase grain planting by 5% a year without deforesting, says minister

By Roberto Samora

SAO PAULO, Jan 17 (Reuters) - The Brazilian government believes that it is possible to increase the area planted with grains by 5% each harvest for several years without deforestation, said the Minister of Agriculture, Carlos Favaro, on Tuesday.

In an interview with Reuters, Favaro said that this would occur within a new government plan to encourage the expansion of planted area using millions of hectares (acres) of degraded pastures, which can be converted into crops. For this, the government will offer credit with adequate interest rates.

The minister said that the country currently has about 150 million hectares (370.66 million acres) of pastures with low productivity, in the process of degradation or already degraded areas. The plan is to use around 40 million hectares, in regions suitable for agriculture, to be converted into crops.

This would allow an important increase in the production of grains and oilseeds in Brazil, which today plants about 77 million hectares.

"Why isn't this converted into crops? Because of lack of investment. So we are going to create a credit line, with compatible interest rates, with a grace period, with extended terms ... So that the producer can take this resource and make the conversion...", he said.

He pointed out that the financing should be reinforced in the next harvest. Another priority will be to expand support for agricultural insurance.

With this, he believes in an increase in planted area of 5% per year. "It is something feasible, at a Chinese pace, but in a sustainable way." (Reporting by Roberto Samora; Editing by Sandra Maler)

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