September 29, 2014
Brazil to stockpile corn in rare move
Brazil's government unveiled corn and wheat stockpiling schemes, in what was seen as an effort to appease growers hurt by lower prices.
Neri Geller, the Brazilian agriculture minister, said that the government would, in a rare move, buy 1 to 1.5 million tonnes of corn for public inventories, on top of a purchase of 400,000 to 600,000 tonnes of wheat.
The announcement, which comes less than two weeks before Brazilian elections, is highly unusual, although likely to be welcomed by farmers, who have seen corn prices fall below values guaranteed by the government.
Indeed, the scheme looks like an effort to appease corn farmers, after the government appeased wheat farmers by announcing earlier its wheat purchase plan, according to Michael Cordonnier, the influential crop scout, and South American agricultural expert.
Previously, Brazil's government typically supported farmers through a Premium Equaliser paid to the Producer, or Pepro programme, which compensates growers if crop values fall below set minimums.