Today it is undeniable how much Brazil produces and exports commodities, feeding the world wherever it may be.
Its exponential growth during the last decades was also due to a significant increase in its productive capacity, without, on the other hand, an increase in surface of the cultivated areas.
It is investments in technology and innovation that have allowed such an evolution. And this can easily be seen when traveling through the Brazilian countryside, where the professionalization of the farmer, proudly showing his evolution and adaptation to new tools contributing to his high performance, is striking.
Today, the fact that public subsidies are insufficient to cover everything that Brazilian agribusiness has to offer is to be seen positively as it leaves room for private funding, thus pulverizing the origin of the financial resources and making the market more dynamic while creating opportunities for new investors.
And what does this private funding look like? It is very diverse…or could we say infinite… And this is the very essence of the economic freedom that promotes the entire production chain:
- Private banks, whether national or foreign, have made available differentiated lines of credit outside the crop plan, even injecting foreign currencies into the country,
- Investment funds have been offering new agribusiness papers and bonds, accessible to any investor who wishes to diversify his assets. These same investment funds are no longer reserved for institutional investors, but are also open to any citizen with the active and proactive power to play a role in agribusiness,
- The world of capital markets getting closer and closer to small and medium-sized rural producers,
- growth funding and venture capital appearing in innovation, technology and sustainability,
- And so on…
And what is the upside of this? Creating competition to improve interest rates, opening space to increase equity investments, raising awareness in the field about the existence of private incentives, the appearance of new technologies to reduce the impact on the environment, and the creation of new professional training in agribusiness that had been unknown until now, which encourages new jobs.
Thanks to the private incentive, we can conclude that the countryside is increasingly brought closer to the city and that the strength of Brazilian agribusiness is in the hand of each citizen.
