Brazilian agribusiness faces credit constraints and rising debt

The Brazilian agribusiness sector is facing significant financial pressure due to rising debt, legal uncertainty, and tightening credit conditions. According to Serasa Experian, judicial recovery requests in the sector rose 56.4% in 2025, with a further 21.9% increase recorded in the first quarter of 2026. Soybean cultivation has been particularly affected, accounting for 137 of the recent recovery processes.

Experts warn that legal unpredictability regarding asset recovery may lead banks to increase interest rates or reduce credit availability. Valdo Silveira, CEO of Leme Inteligência Forense, notes that creditors are increasingly concerned not just with the existence of assets, but with the time and cost required to convert those assets into liquid capital.

Simultaneously, producers report severe bureaucratic obstacles when attempting to renegotiate existing debts. Despite legislative measures intended to facilitate reorganization, financial institutions are reportedly imposing strict requirements, such as mandatory down payments and new collateral. Data from Farsul indicates a contraction in financed agricultural area of over 25% between July 2025 and July 2026, while delinquency rates in regions like Rio Grande do Sul have climbed significantly.