Brazil Government Moves to Ease Agricultural Credit Stress

研报英文原文证据摘录

Brazil Government Moves to Ease Agricultural Credit Stress

Update

July 16, 2026 10:31 PM GMT

Morgan Stanley C.T.V.M. S.A.+MLatAm Agribusiness | Latin America Julia Rizzo

Equity Analyst and Commodities Strategist

Brazil Government Moves to Julia.Rizzo@morganstanley.comJulia Habermann +55 11 3048-6114

Research Associate

Julia.Habermann.Oliveira@morganstanley.com +55 11 3048-6096

Ease Agricultural Credit Stress

LatAm Agribusiness

Latin America

The federal government has published MP 1.376/2026, creating special credit Industry View In-Line

lines to restructure more than R$100 billion (U$19.7bn) in debt held by farmers

and cooperatives affected by climate events and weak agricultural prices between

2019 and 2025. The program allows eligible producers to refinance rural debt with

interest rates ranging from 5% to 12% per year, repayment terms of up to 10 years,

and up to 2 years of grace period, depending on the severity of losses incurred.

To qualify, producers must demonstrate losses in at least two crops between

2019 and 2025 that resulted in a reduction of at least 30% in expected gross

agricultural income. The losses must have been caused by extreme weather events

or declines in the selling prices of the financed agricultural products and must be

supported by a report issued by a qualified professional. The measure covers rural

credit operations, including investment, commercialization and working capital

loans, and also includes cooperatives. The government estimates an annual fiscal

cost of approximately R$3.6 billion, while the total volume of debt eligible for

restructuring exceeds R$100 billion.

In our view, the MP represents an important relief measure for the sector,

helping restore liquidity, reduce financial stress and improve access to credit. It