The Brazilian agribusiness sector faces a turbulent scenario with the increase in requests for judicial recovery.
According to data released by Serasa Experian, there was an increase of approximately 150% in requests during the third quarter compared to the same period of the previous year, reaching a record level.
The current situation is the result of a combination of adverse factors for the sector. In recent years, rural producers have faced a significant drop in the price of soybeans on the international market, while production costs have increased considerably, especially in relation to inputs such as pesticides and fertilizers.
Added to this is the increase in the Selic rate, which went from 2% to , putting even more pressure on the margins of rural producers who need to finance themselves.
According to Frederico Poleto, head of Agro at Serasa Experian, this scenario has provoked a cautious reaction from financial institutions.
“The market, because it is at high levels, is being a little more cautious with granting credit, it is being a little more judicious with how to make approvals, the cutoff limits, the requirement for guarantees”, explained Poleto.
Geographic and cultural distribution
According to Serasa, judicial recoveries follow historical patterns in terms of geographic distribution, with a greater concentration in the Center-West, Southeast and South of the country. States such as Mato Grosso, Goiás, Minas Gerais and Rio Grande do Sul lead the requests.
As for the most affected crops, soy comes first, followed by cattle farming. This scenario reflects the vulnerability of these segments to price and cost fluctuations in the international market, according to the company.
Alternatives for rural producers
Faced with difficulties in accessing traditional credit, experts point out some alternatives for producers. appears as an option to minimize risks, although its adherence is still heterogeneous in the country, with a greater concentration in the South region.
Another alternative that has gained ground is the barter system, an operation in which the producer allocates part of his future production to finance the purchase of agricultural inputs, thus reducing the need for bank credit.
Furthermore, mechanisms such as financing via resale of inputs, tradings and Fiagros (Investment Funds in Agroindustrial Production Chains) have also been used as alternative forms of fundraising.
