Recent advances in the rural credit market in Brazil

Diário Agrícola

Nov 23, 2023

With its natural resources and potential for productivity gains that can expand its production, Brazil is well-positioned to play a leading role in ensuring global food security.

To continue its expansion, Brazilian agribusiness needs resources to finance all stages of the production process: cost management, commercialization, industrialization, investments in mechanization and storage, among other financing needs. For a long time, these resources predominantly came from the public budget, such as constitutional funds and mainly from directed resources from demand deposits and rural savings. However, existing restrictions on the public budget and the limitations of resources within financial institutions have created obstacles to the dynamism and expansion of the sector.