South America Calling

Agribusiness, Mato Grosso and the Farm Lobby

Agribusiness accounts for half the GDP of Mato Grosso, Brazil's No. 1 grain state, according to the state's Agricultural Economy Institute (IMEA).

The institute used 2007 figures but the growth of agriculture in the region would indicate current figures would not be greatly different.

In Brazil, as a whole, agribusiness accounts for around a quarter of GDP, making it a cornerstone of the economy. Farm exports also shore up the trade balance.

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This economic clout has not always been reflected politically, although the rural lobby has flexed its muscles recently, most notably through pressure to expand the farm credit budget and the passing of the Forestry Code, which regulates preservation on farms.

The rural lobby in Congress has actually grown a lot in recent years Currently, the Agriculture Parliamentary Front counts on 202 members (37% of deputies in the lower house and 14% of senators).

Brazil has congressional elections on Sunday and, according to Moreira Mendes, a lower house member and front leader, the group is confident that its numbers will swell further next year.

As in the U.S., rural states have a number of Congressional seats out of proportion with its population. However, the lobby is not as united as its U.S. counterpart.

The Brazilian rural lobby rarely votes en bloc. Regional, party and pork-barrel politics often take preference over farm issues.

"This undermines the strength of our lobby. It is very easy to split it," said Antonio Chavaglia, president of the COMIGO farm cooperative in the center-western state of Goias.

Meanwhile, the lobby has a negative image in parts of society because of its opposition to stronger legislation on slave labor and more extensive land reform, combined with a perception that it acts as apologists for deforestation.

(CZ)

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