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The cap limit for this bonus is BRL 3 500 (USD 1 800) per beneficiary for each crop. During 2007, the only support provided was bonuses for cashew nuts. Another relatively new scheme is the Prêmio Equalizador Pago ao Produtor (PEPRO) programme, introduced in 2005/06. It operates like a deficiency payment (classified under payments based on output) by paying the seller, whether a producer or an agricultural 48 AGRICULTURAL POLICIES IN EMERGING ECONOMIES 2009: MONITORING AND EVALUATION – ISBN 978-92-64-05927-6 – © OECD 2009 w _it E d it 2.

De 07 c. Ja 07 n. Fe 08 v. M 08 ar Ap . 08 r M . 08 ay Ju 08 ne Ju 08 ly Au 08 g. 08 95 Source: Brazilian Institute of Geography and Statistics (IBGE); Extended National Consumer Price Index (IPCA). 1787/530134604626 Domestic agricultural policies Price and income support policies The traditional market price support instrument, Aquisição do Governo Federal (AGF), consists of direct government purchases from producers and producer co-operatives at announced prices, which generally vary between major regions.

Producers receive input support through preferential credit arrangements including administrative requirements to allocate credit resources to agriculture, controlled interest rates at below market levels, and debt rescheduling. Intervention in the credit market is justified on the grounds that it offsets high market interest rates that are the result of macroeconomic instability and provides access to credit for the rural poor who would not otherwise be able to obtain credit. The National Programme for the Strengthening of Family Agriculture (PRONAF) was introduced in 1995 to provide long-term benefit to small holders – including subsidised credit, training and extension, and the promotion of value-added activities.

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