For now, though, producers are taking out loans and making

Brazil farms poised for record Official Moncler Outlet investment boom

BRASILIA (Reuters) Brazilian farmers are spending like never before on farm equipment, fertilizer and other investments, a possible sea change in rural sentiment that could boost long term output in a country that barely scratches moncler jackets kids the surface of its agricultural potential.

cheap moncler outlet canada moncler An unprecedented $122 billion is moncler jacket online expected discount moncler jackets to flow into the farm sector this year, up 12 percent from 2010, moncler coats sale money that will be plowed back into the land.

Bucking a trend seen in many previous commodities moncler jacket outlet booms in Brazil, farmers are moncler jackets outlet being aggressive in reinvesting their profits this year, looking to improve productivity moncler jackets men rather than merely expand acreage, data such as tractor sales indicates.

moncler outlet store Their moncler coats for women spending is due largely to the belief that agricultural prices will remain high even after recent declines and, also, a hefty dose of confidence in Brazil hard won economic stability.

see a new Moncler Factory Outlet wave of cheap moncler jackets outlet optimism to invest, said Jose Carlos Vaz, director of agribusiness at newmoncleroutlet.com Brazil top agricultural lender, Banco do Brasil. indicates cheap moncler jackets that the (price) level we will settle at will be higher in the coming years.

The world No. 2 food producer after moncler outlet store the United States has been moncler outlet particularly blessed by the commodities boom of recent moncler outlet online store years as prices for soy and sugar surged. Coffee and corn prices doubled since mid 2010, largely due to ferocious Chinese demand.

Previous agricultural booms often failed to translate into major investments because moncler outlet usa of economic moncler outlet ny mayhem in a country where hyperinflation reached 2,500 percent in the early 1990s. As recently as 2003, Brazil financial system teetered on the moncler jackets cheap brink of collapse as a leftist government took moncler outlet location power.

Interest rates were so cheap moncler coats for women exorbitant during those years that farmers would take out loans to buy a tractor, for example, and still find themselves owing more than the face value of their investment three years after purchase, cheap moncler jackets wholesale said Derli Dossa, the agriculture minister head of strategic management.

cheap moncler jackets Today, thanks to sober fiscal management by successive leftist governments and the accrued benefits of the commodities boom, Brazil seems more financially stable than some developed economies in Europe and North America. While interest moncler jackets for women rates remain high at about 12 percent, credit is set to expand another 10 to 15 percent this year to another record high.

If the investment boom continues, Brazil agriculture ministry may eventually have to raise its long term forecasts for output. It currently expects grain production to rise to https://www.newmoncleroutlet.com 176 million tones by 2021, from around 143 million tones at present.

buy moncler jackets Several risks exist, from Brazil underinvestment in infrastructure to the possibility that recent declines in commodities prices will deepen. For now, though, producers are taking out loans and making bets that could revolutionize efficiency and bolster land under cultivation.

borrowing from the bank are no longer scared their loans will suffer variations making it risky, Dossa said.

moncler outlet online MASSIVE ROOM moncler outlets uk FOR IMPROVEMENT ON FARMS There are moncler jackets outlet online several signs of the investment sweeping Brazil farm sector, including:

Equipment sales at Brazil largest annual farm machinery fair, held this month in Ribeirao Preto moncler outlet online in Sao Paulo buy moncler jackets toronto state, totaled a record 1.8 billion reais ($1.1 billion) up 53 percent from 2010.

moncler mens jackets Nationwide, sales of farm machinery including tractors and harvesters rose 16 percent in the 12 month period through February, the latest data available from Discount Moncler Coats the National Association of Automotive Vehicle cheap moncler Manufacturers shows.

moncler sale outlet Fertilizer use is expected to rise 6 percent moncler outlets usa to around 26 million tones this year, compared with typical annual growth of around 4 percent, according to data produced for the National Association of Fertilizer Distributors.

Of the 100 billion reais in subsidized credit that Brazil farm ministry makes available each year through banks, the ministry expects a record 95 percent to be lent in the July 2010 June 2011 period up from 91 moncler outlet woodbury percent in the previous annual cycle.

The possibilities for payoff are immense.

moncler outlet sale The farm ministry has identified cattle rearing as a top priority for improvement. Even though Brazil is the world top beef producer, productivity on ranches remains low at about 1.2 head of cattle per hectare about a third of what more efficient countries manage.

By improving productivity through investments in fencing and chemical inputs to recover spoiled pasture land, the ministry believes that roughly 10 million hectares currently used for cattle could moncler outlet uk be planted with cash crops moncler outlet mall instead. That equivalent to a fifth of the area cultivating grains in Brazil today.

moncler outlet Brazil soil is generally nutrient poor, and while industrial farms tend to use fertilizer well, there is enormous room for improvement on the family plantations that produce nearly half the country corn, said soil and plant nutrition researcher Vinicius Benites.

cheap moncler coats Some producers are just now moncler jackets starting to consider investments, agriculture minister Wagner Rossi said recently.

moncler sale have to win over the traditional ranchers moncler coats for men to adapt modern day practices, Rossi told reporters at his home in Ribeirao Preto, where he cultivates sugarcane. are risk moncler chicago averse and don like taking out financing. (But) the return on their investment can be in as little as a year.

FOCUS ON moncler jackets toronto EFFICIENCY MORE THAN GROWTH Part of the gains can be achieved by cultivating more land. Rossi says Brazil has roughly 120 million spare hectares it could turn to a land mass roughly the size of Iceland.

Nonetheless, Rossi and other officials say they want to focus more on boosting output on existing farmland, in part due to environmental concerns.

cheap moncler outlet Brazil has already established a global reputation as a pioneer in cultivating nonnative crops and raising yields in a mostly tropical climate, moncler coats largely thanks to the moncler jackets canada government agricultural research unit Embrapa with nearly 2,000 PhD researchers and a $1 billion annual budget.

monlcer down jackets Embrapa is currently exploring nanotechnology and advanced genetics projects that could boost yields further.

Yet the research unit adds that its existing technology would be enough to make yields soar if it were applied throughout Brazil moncler coats outlet agriculture sector. Education of producers and investment tend to the biggest barriers, it says.

cheap moncler sale The latter issue is on its way to being addressed as confidence among farmers soars to new levels, says Walter Horita, president of the Aiba farmer association in the northeastern state of Bahia. year could be the most profitable ever since I been in agriculture.