The government will extend the agricultural emergency for 5 months in view of the dramatic situation in the countryside

the minister fernando mattos made the decision after a meeting, yesterday afternoon, of the Agricultural Emergency Committee. The current exceptional aid measures for the countryside expired next Monday and now they will only do so at the end of September, completing 11 months of state assistance to the sector, reported En Perspectiva.

The decision responds to the fact that, after listening to technicians from different directions of the MGAP, the Meteorologic service and of the Ministry of Economy and Finance (MEF)the government confirmed that the effects of the drought will be felt even during the winter season, so it is essential to extend the assistance during that period.

How much will the country lose from the drought?

Last week, the Ministry of Livestock, Agriculture and Fisheries (MGAP) revised upwards the estimated damage from the drought. While in February they were projected at 1,100 million dollars, currently the figure has increased over 1.8 billion dollars in losses.

From the MGAP, however, they warned that this number will continue to rise as the crops are processed and there is a clearer picture of the results in livestock. Meanwhile, the impact on exports has already begun to be felt, and next month we will be able to have a more accurate figure on the economic impact.

What does agricultural emergency assistance consist of?

Since the current agricultural emergency was decreed, the MGAP has been adding several additional aid measures to the affected producers. Some of them are:

• . Extension of the maturities of bps until May 31, for farms.
• . He Ministry of Industry, Energy and Mining (MIEM) will grant an economic refund of 100% (up to 25,000 pesos) to those rural producers who have purchased and installed solar water pumps.
• . Colonization will not increase the rent this year.
• . The joint venture reduced the cost of electricity for irrigation tasks by 15%, with an estimated cost for the state company of 2.9 million dollars.
• . Grazing is enabled on routes with a permit issued by MGAP zones.
• . FAE loans and credits with Microfinance Republic with subsidized rates and extended terms.
• . Micro, small and medium enterprises (MSMEs) of the agricultural sector can access guarantees from the National Guarantee System (SiGa), paying a single subsidized commission of 0.6% per year for working capital credits.
• . The MGAP develops a support operation for micro-producers through the purchase of rations with a subsidy of 75%. It is estimated that they will be about 10,000 tons for the entire national territory.