SAO PAULO, 12/4/2001 (Dow Jones)- The Brazilian government will releasethis month one billion reals ($1=BRR2.49) in financing for the agriculturesector, an official at federally run Banco do Brasil said Monday.By the new year, Banco do Brasil intends to have made available BRR6.7billion in credit for farmers since the end of July.That total should swell to BRR10.5 billion by the end of June 2002, saidRicardo Conceicao, head of the bank's rural debt department.Brazil's government has earmarked about BRR14.7 billion for agriculturecredits for the 2001-02 season, up 30% on the BRR11.3 billion in financingprovided in 2000-01.However, authorities have said total financing this season could grow toBRR16.6 billion as more funds become available.By increasing funding for the agriculture sector, the government hopes toboost the country's grains and oilseeds output to more than 100 millionmetric tons.Brazil is currently wrapping up its 2000-01 grains and oilseeds crop,which is seen coming in at a record 99.2 million tons, up 19.2% on lastseason's output of 83.25 million tons, according to the National FoodSupply Agency, or Conab.Initial forecasts peg next season's crop at an unprecedented 100.3 milliontons.Of total financing for the 2001-02 crop, BRR11.4 billion will be providedat a fixed rate of 8.75% a year, while the remaining BRR3.3 billion willbe issued at a variable rate of interest, depending on the source of thefunds.While the bulk of the financing is for grains, oilseed and root vegetablesfarming, about BRR700 million is also included for the 2002-03 coffeecrop.