Agribusiness represents approximately one quarter of Brazil’s GDP. According to the Brazilian Agribusiness Labor Market bulletin, the sector generates around 28 million direct and indirect jobs. It is the backbone of the economy, responsible for the trade surplus, food security and a significant share of income generation.

In the post-pandemic period, agribusiness experienced a positive cycle, driven by strong commodity prices, low interest rates and incentives for exports. For years, the sector expanded based on accessible credit and a favorable exchange rate, often growing through indebtedness. However, since 2023, the segment has been facing the largest rural delinquency crisis in recent history.

The combination of falling agricultural prices, high production costs, elevated interest rates, limited access to credit, ongoing climate deterioration and accumulated debt has created an unprecedented situation. Data from Serasa Experian show a 1,181% increase in requests for judicial recovery in the sector.

In Rio Grande do Sul, the situation was even more severe, with a prolonged drought followed by historic floods. Data from the Brazilian Confederation of Agriculture and Livestock indicate that the state accounted for 27% of all rural debt in the country and recorded a 25% delinquency rate in credit operations.

In addition, few eligible producers were able to access the emergency rural credit announced by the government after the floods. The main obstacles were excessive bureaucracy, delays in regulation, prior indebtedness and requirements for unattainable guarantees.

Given this scenario, is it possible to remain in agribusiness? Yes, but not as things stand today. Brazilian agribusiness is technological, productive and resilient. In the short term, however, survival depends on credit that truly reaches producers, simplified rules, effective rural insurance, regulatory stability and proper recognition of the sector’s importance to the real economy.

Brazilian agribusiness is not asking for privileges. It is asking for minimum conditions to continue producing, especially in a sector that sustains the country. Ignoring this reality is a strategic mistake for Brazil.