FINANCIAL WOES
Farm defaults continue to worry Brazil's agro sector
Farmers are contending with increasingly difficult credit conditions. Photo: Andrii Yalanskyi/Shutterstock
Default rates among Brazilian agricultural producers have surged over the past year, eroding profits for traditional lenders and sparking fears of systemic risks in one of the country’s most vital economic sectors.
A recent study by L.E.K. Consulting paints a stark picture. Farmers’ default rates have climbed steadily since early 2024, rising from 3.2% to 9.5% year over year through August 2025.
Unlike previous crises, the current wave of delinquencies appears to be essentially…
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