Brazil sees surge in judicial recovery filings by rural producers

In early 2024, requests for judicial recovery by Brazilian agricultural producers jumped 523% compared with the same period a year earlier, reaching 106 filings in the first quarter. The legal framework introduced by Law No. 14.112/2020 now permits individual farmers to file for recovery, allowing them to negotiate debts with banks, suppliers, credit cooperatives and trading firms and to present a structured repayment plan.

Commentators warn that the rapid increase may reflect misuse of the instrument, noting that many companies file without a realistic prospect of revival, turning the process into a tool for delaying creditor actions rather than preserving productive activity. Critics stress the need to balance debtor relief with creditor rights to avoid transferring undue losses to creditors.