Farmer Debt Could Derail Soya In Mato Grosso
31 August 2006 Soybean production could be down by as much as 30% in the chief Brazilian soybean state of Mato Grosso next season, said Blairo Maggi, governor of Mato Grosso. Without assistance from the federal government, Maggi argued that without debt renegotiation and an extension of deadlines for payment, many growers will be unable to invest in their fields for the coming marketing year.
Maggi also echoed farmer concerns in matters of national policy, joining them in pushing for the liberalization of imported inputs, cuts in the national interest rate, and declaring Asian soybean rust disease as an epidemic.
Maggi blamed the growing strength of the Brazilian currency, the Real, along with high national interest rates for contributing to recent yield and production losses by lowering commodity prices and damaging farmer finances.
Rui Ottoni do Prado, president of the Soybean Growers Association of Mato Grosso, warned that for the same reasons, many growers in Mato Grosso are considering dropping out of the soybean business.
Those decisions will need to be made soon. For farmers who plant early soybean varieties, planting is already underway. For those who plant more traditional varieties, planting is usually begun in late September and early October.
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