Agriculture Recovers in 2017 with a Good Harvest Forecast for Soybeans and Corn

02/20/2017 - 10h52

So far, everything is going well for agriculture, a completely different scenario from 2016, when weather conditions were responsible for major decreases in production.

The forecast is for the sector to inject R$546 billion (US$ 175 billion) into the economy, R$ 15 billion (US$ 4,81 billion) more than last year.

And when agriculture is doing well, the effects on income and economic expectations are felt immediately throughout the country.

Sorriso (Smile), a city in the State of Mato Grosso which is considered to be the largest soybean producer in the world, is back to giving justice to its name.

While tiny Urupema (State of Santa Catarinha), with only 2.400 inhabitants, is waiting to pick apples.

During three months, the city lives the hustle and bustle of this harvest, which is promising to be a good one.

Agriculture Minister José Gasques explains the multiplier effect of this production. "After leaving the farms, the production moves through the transportation, industrialization, financial and exportation sectors. And each municipality is boosted according to its characteristics".

That is what the two locomotives of Brazilian Agribusiness - soybeans and corn - are doing. With record forecasts expected, these products are leaving their marks.

The agricultural equipment sector sold 75% more in January of this year than in the same period last year. The fertilizer industry expects to repeat the same level of record sales recorded in 2016.

This because producers are preparing to collect record harvests. Soybeans harvest could surpass 2016's by 10 million tons and corn, by 21 million.

Such strong growth should propel national production of grains to reach a record total of 220 million tons this year.

Translated by LLOYD HARDER

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