It's a shame that the Brazilian producer put himself in this bind. Everyone knows that agriculture is cyclical, but in Brazil, a land without tax deferred exchanges and government subsidies, the high of the cycle is higher and the low is much, much lower. |
What did they do? They bought land in three- or four-year payments (of soybeans). Then, with the expansion of land, they needed to buy more machinery, so they did. There was also a popular government program with subsidized interest rates that was spread out over seven years. |