The Government of Brazil increased the minimum support price for the 2016 wheat crop. Under this mechanism, if the domestic price of wheat goes below the minimum price, the Government pays farmers or cooperatives the difference between the market price and the minimum official price. In the South Region, which is the country’s main producing area, the price was raised by 10.5 percent to BRL 38.65 (USD 11.13) per sack of 60 kilograms. Sowing of the 2016 wheat crop has recently started, although at a slow pace due to dry weather, and plantings are anticipated to decline for the second consecutive year. This reflects increased production costs and adverse weather conditions affecting crops in the past two years, which have pushed farmers to increase plantings of more profitable maize crop, especially this year.