The uncertainty associated with the new package of loans for farmers in Brazil, causes some concern among the world's largest manufacturers of agricultural machinery, since the delay in determining the program may adversely affect their sales.

Despite the relatively positive outlook for the Brazilian agricultural sector - the country is harvesting the second largest soybean crop and record corn crop - directors John Deere, Case IH and AGCO Corp are worried about the new financing rules, as Brazil's new leadership promises to reduce private sector funding.

For many years, the Brazilian government has subsidized interest rates on loans to farmers. The federal government paid banks the difference between the conditions that it sets for farmers in the annual farm loan package and the market conditions.

Economy Minister Paulo Guedes, President’s Chief Politician Jair Bolsonaro, advocates for a gradual increase in private financing of the agricultural sector.

“This lack of information about the new plan causes concern for farmers, it makes it difficult for them to make decisions,” the minister said, adding that now is the time of year when Brazilian farmers usually plan the next harvest.

Typically, during this period, the Brazilian government announced new loan packages and rules, but this year this did not happen.