Agricultural sector economic and policy pressures

Agricultural sectors in Brazil and the United Kingdom are facing various economic and structural pressures. In Brazil, the agribusiness sector is vulnerable due to a heavy reliance on imported fertilizers, with approximately 85% of supplies sourced from abroad. This dependency exposes the supply chain to international freight costs, currency fluctuations, and geopolitical tensions. Additionally, high domestic natural gas costs threaten the competitiveness of local production plants.

In the United Kingdom, farming stability is being challenged by the expiration of agricultural inheritance tax relief. As of April 2026, relief for agricultural property is capped at £2.5 million, subjecting assets above this threshold to a 20% tax. This change, alongside the phase-out of post-Brexit subsidies, is reportedly forcing experienced farmers off their land.

Global concerns regarding food security have also emerged, linked to potential fertilizer shortages and debates over the sustainability of chemically intensive agricultural models.