Brazil faces the largest rural credit crisis since the Real Plan, assesses Farsul

The available resources for Rural Credit in Brazil are experiencing an unprecedented contraction since 1995, according to a survey by the Economic Advisory of the Federation of Agriculture of Rio Grande do Sul (Farsul). The drop affects both operating costs and investments, and the entity warns that the crisis has not yet reached its peak. In the first quarter of the 2025/2026 crop (July to September), credit for operating costs fell by 23% compared to the previous cycle. For investments, the contraction is 44%. In Rio Grande do Sul, the figures are similar: 25% and 39%, respectively. “This is not a regional problem, but a national crisis, the largest in history,” says Farsul’s chief economist, Antonio da Luz. Da Luz highlights that, despite announcements of “the largest Safra Plans in history,” the volume actually released has been falling. “What we are seeing now is a real drop in the credit made available, and not just a difference between announcement and reality,” he ...