Brazil is our focus this week.
Their agricultural production system is called ?world class? by a United States journalist.
Brazil?s political leaders have been Socialists, found to be corrupt. Now, they have a new president, known as ?Trump of the Tropics?
Brazil is Latin America?s largest and most populous country. In the last 60 years, the government has switched from military rule to democracy more than once.Recent presidents have been deemed to be corrupt socialists.
In January, the country inaugurated Jair Bolsonaro, a 63-year-old, far right ?Trump wannabe? who promises an end to business as usual government.
Chris Clayton, national Ag policy reporter for DTN and Progressive Farmer Magazine, made these observations about the change the new president could bring.
?I think we’re going to see some loosening of regulations in agriculture and that was some expectation from some of the farmers in different ways. Just the paperwork they have to deal with, in terms of delivery and transportation issues. I got a sense from the people I talked to, not just farmers, that there was a lot of optimism. There was so much corruption in prior governments, so much money that was uncovered that turned hands over the highest levels that they felt Bolsonaro’s government can simply operate and avoid the corruption, that that would be an improvement, but they did believe that there would be some reduction in regulatory issues. That turns it over to the issue that I thought was kind of fascinating,” Clayton said.
Clayton says this ?pro-business President? may reduce the land reserves required in tropical areas and allow farmers to put more land in production.
“Some of these farms have huge reserve requirements that they are, you know, talking 65 to 80-percent of the actual acreage has to be kept in reserve and at that point, where we’re at now, we haven’t had this equilibrium with Brazil when it comes to soybean production. If Bolsonaro’s government changes policy, loosens the rules on those reserve requirements and suddenly you’re opening up a potentially, 10, 15, 20-percent more acreage down there in Brazil for those farmers as well. And that would be, have a tremendous impact,” Clayton said.
Tomorrow we analyze how Brazil is handling their need for farm workers.
AUDIO: World of Agriculture
