[REVISION HISTORY]

Brazilian agricultural policy and fuel subsidies

Updated 13 times since CLSTR started tracking revisions of this situation.

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2026-09-10 10:22 UTC → 2026-09-10 13:04 UTC · added ~~removed~~

The Brazilian government and Senate have implemented several legislative and executive measures to support the agricultural sector and enhance food security. In the Senate, the Fertilizer Industry Development Program (Profert) was approved to increase domestic production and decrease reliance on imports. Following federal requests to manage fiscal impact, tax benefits were adjusted from R$ 10 billion to R$ 5 billion over five years. The program includes mandatory minimum quotas for domestic fertilizer use, starting at 2% in 2027. Under Project of Law 699/2023, Profert aims to address the fact that imports currently account for over 80% of domestic consumption. The program provides federal tax credits for the construction, expansion, or modernization of production plants, alongside tax exemptions for importing necessary industrial machinery. It also includes the creation of a strategic fund to protect the agribusiness sector from international price volatility and geopolitical shocks. Recent updates confirm projected tax credits of up to R$ 1 billion annually between 2027 and 2031. Legislative efforts have expanded through Complementary Law Project (PLP) 114/2026, which passed both the Chamber of Deputies and the Senate to mitigate rising international energy prices. This package provides federal tax reductions on diesel, biodiesel, gasoline, ethanol, and aviation kerosene. To protect the biofuels sector, the law mandates that if gasoline tax reductions reach 30% or more, ethanol taxes must be reduced to zero. The bill also includes up to R$ 1.2 billion in aid for ethanol producers and incentives for critical minerals. To address regional and sector-specific pressures, the executive branch has utilized provisional measures to allocate significant funds. Under Provisional Measure No. 1,374/2026, R$ 270 million was authorized for independent sugarcane producers in the Northeast to mitigate losses from climate issues, falling sugar prices, and a 50% tariff imposed by the United States.

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