Minister Fernando Mattos confirmed the 5-month extension and ratified that the eight agricultural items that were covered until now are maintained.
The Minister of Livestock, Agriculture and Fisheries, fernando mattosmade the decision to extend by 150 days the agricultural emergencydue to the devastating effects of the drought in the Uruguayan countryside. The measure extended by five months more will be maintained for the items of livestock, dairy, horticulture, fruit growing, agriculture, beekeeping, poultry farming and forestry, which were included up to now.
In this way, the emergency dictated by the agricultural portfolio will continue in force during the winter, with the intention of making visible “elements of evolution” on end of september. “With spring ahead, we can have a tighter outlook,” said Mattos, who pointed out that “the government’s slogan is to keep all productive structures standing.”
The current exceptional aid measures for the countryside expired next Monday and now, with the new extension –which will begin that day–, they will total 11 months of state assistance to sector.
The March rains gave a breather, both to agriculture and to the state company OSE, which is experiencing a severe shortage of drinking water as a result of the water deficit. Regarding rainfall, the hierarch indicated: “They are reliefs that do not solve the problemThere is not enough recovery time for crops or pastures”.
Among the various benefits offered by MGAP, from tax waiversshifts in payment due dates, financing and subsidies, Mattos assured that there are more than 10,000 applicationsan important figure, taking into account that the universe of producers is around 15,000.
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.
Source: Ambito
