BNDES announces credit terms for Brazil grain storage expansion

The Brazilian Development Bank (BNDES) has announced the conditions for the Warehouse Construction and Expansion Program (PCA) for the 2026/27 agricultural year. While the application period has not yet opened, the terms have been established to address growing infrastructure pressures.

For grain storage projects with a capacity of up to 12,000 tons, fixed interest rates will be capped at 8% per year. Other eligible projects may face rates up to 9.5% per year. Funding limits are set at R$ 50 million per producer annually for grain storage, while production cooperatives can access up to R$ 200 million. Projects for other financable products are capped at R$ 25 million. BNDES may cover up to 100% of approved items, with repayment terms of up to ten years and a maximum grace period of two years.

The program, valid until June 30, 2027, also covers cold storage and warehouses for fruits, vegetables, fibers, sugar, and other derivatives. This initiative comes as Conab estimates Brazil's 2025/26 grain production at 360.8 million tons, while IBGE reported useful storage capacity at 233.8 million tons in the second half of 2025.