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land in that production and it is expected that it will be the volume contributor at least through 1985 when 4.1 million more acres of land will be producing feedstock for alcohol.
It was interesting to note that the government sets the price for gasoline and alcohol at the pumps. During our visit, the prices were 92 cents per gallon for alcohol and 2 dollars and 11 cents per gallon for gasohol. It was estimated that the cost for making a gallon of alcohol was between 55 and 68 cents.
Finances are an important part of this switch to alcohol. Noting , that Brazil imports 960 thousand barrels of oil per day, which constitutes 85 percent of her oil consumption, one official said, “The oil is bought with dollars while alcohol can be financed with paper money, thus generating internal cash flow.”
About 80 percent of the increases in alcohol production are expected to be financed by the Brazilian government. But a program for borrowers permits them to obtain 100 per cent financing for land preparation and 80 per cent financing for the purchase of farm equipment. Twelve years are permitted for repayment of the loan, the first three years being a grace
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