The Rural Credit in Brazil: Evolution and current situation

Abstract

The agribusiness shows economic importance and rural credit influenced the development of Brazilian agriculture; however, it appears to be insufficient to attend the resources required for agricultural production in Brazil. This study aims to assess the rural credit evolution and its current situation. Between the years of 1960 and 1979, there was a growth in the credit volume; however, from 1979 to 1984, there was a reduction of 62.96%. In the years 2000, the increases were re-taken, reaching US$ 32,39 billion in 2007. The increase in cost farm production and the uncertainties related to international financial crisis justifies the support and expansion of official rural credit resources in Brazilian agricultural production.