Brazil-Money far Farmers.

MONEY FOR FARMERS.

Brazil is the worlds biggest exporter of beef, poultry, sugar and coffee, according to Agricultural Minister Reinhold Stephanes, the Federal Bank of Brazil, has to ease up restrictions on lending money to farmers. Brazilian banks need an additional US$5 billion urgently, to lend to farmers and growers and the minister said on Friday "We are going through a small strangling of credit at the moment as banks lack liquidity".

The minister was being interviewed by Bloomberg Television and went on to say "Commodity traders who previously financed our farmers have stopped lending to our producers".The minister added that he had been in talks with Central Bank President Henrique Meirelles and Finance Minister Guido Mantega, to inject US$5 billion immediately into commodity trading companies, in order that they could finance producers.

The minister added that he believed the current financial problems, would take four to five months to resolve.

Brazil is in a unique situation like Argentina, Uruguay and Paraguay, while the economic meltdown is going to have a knock on effect, as long as there are plants in ground and cattle in the paddocks, as well as oil under the land and sea, there is indeed light at the end of the tunnel.