Costs, Climate and Increased Investment Drive Crisis in Brazilian Agribusiness - 13/11/2026 - Business - Folha de S.Paulo

The financial crisis in Brazilian agribusiness stems from a period when the Selic benchmark interest rate was close to 2%, credit was abundant, commodity prices were rising and major investments were made in land and machinery.

The rapid shift in conditions, with higher interest rates, falling international prices and geopolitical events that drove up costs, reduced farmers' income and their ability to meet financial obligations. Drastic climate changes also caused production losses.

Banco do Brasil cited the situation when releasing its third-quarter earnings. "We are going through the most severe cycle of agricultural credit costs in our history," said Tarciana Medeiros, the bank's president. The 2027 harvest is expected to be a record, but the gross value of production is projected to be lower than in 2025.

Farmer Pedro de Camargo Neto points out that debt is also held in CPRs (rural product notes, a form of credit from suppliers, cooperatives and commodity trading companies), spreading the problem throughout the supply chain.

The problem is global: American, European and Australian farmers are also losing income.