Jul 16, 2026
Brazil Government Announces Program to Refinance Rural Debt
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Over the past two years, Brazilian farmers have accumulated a large amount of debt, so much so that many farmers cannot qualify for new production loans. In an effort to ease the burden on the most indebted farmers, the Brazilian Finance Minister announced last week that the government intends to issue a provisional measure in the coming days on renegotiation of rural debt.
According to the Minister, interest rates will be 6% per year for small producers, 9% for the medium, and 11% or 12% for the large producers. Regarding the repayment schedule, the general rule is 8 years for repayment with an extended period to 10 years in cases of more severe losses due to weather extremes.
The renegotiation will have a limit of R$ 8 million for farmers affected by climate change and R$ 4 million for those who have suffered losses due to price variation of their products.
If enacted by the Brazilian Congress, it would cost the National Treasury R$ 2 billion to R$ 3 billion per year, in addition to the already existing cost with implicit subsidies from the lines of credit. For the most indebted Brazilian farmers though, it would be a lifeline helping them to stay in business.