According to data from Serasa Experian, number of judicial recovery requests jumped from 534 by 2023 to 1,272 in 2024
The Brazilian sector is facing a significant increase in deficit, driven by the growth of requests for judicial recovery. This elevation has generated concerns between the country’s leading agricultural funders, including Banco do Brasil, which already feels the impacts of this situation on its financial results. According to data from Serasa Experian, the number of judicial recovery requests in agribusiness jumped from 534 by 2023 to 1,272 in 2024, establishing a new record. Experts point out that judicial recovery is a relatively new mechanism in the sector, and many indebted producers have begun to use it as an alternative to dealing with their financial difficulties.
Producers’ indebtedness is mainly attributed to factors such as inflation, climate change and increased production costs, especially with more expensive inputs. These challenges have made it difficult to renew credits by producers, leading many to use judicial recovery as a viable solution. Marcelo Pimenta, head of agribusiness of Serasa Experian, rules out the existence of a systemic crisis, stating that the sector is only adjusting to current economic conditions. He points out that inflation and the appreciation of the dollar, which makes inputs more expensive, are factors that contributed significantly to the increase in costs faced by producers.
Pimenta notes that most producers who resorted to judicial recovery were already in critical indebtedness. However, he also mentions that some producers with payment capacity have opted for this measure, although they are isolated cases. According to Serasa, the state of Mato Grosso leads the number of requests for judicial recovery, followed by Goiás, Minas Gerais, Mato Grosso do Sul, Paraná, Santa Catarina, Rio Grande do Sul, Rondônia and Tocantins.
