Major soybean traders may exit Amazon protection pact to preserve tax venefits in Brazil

programs starting in January. According to sources familiar with the matter, traders are seeking to protect significant financial benefits as Mato Grosso — Brazil’s top agricultural state — enforces the new rules. The state produced around 51 million metric tons of soybeans in 2025, surpassing Argentina, and hosts key operations of major global exporters. A preliminary audit found that grain traders received tax incentives worth about 4.7 billion reais ($840 million) between 2019 and 2024. ADM and Bunge were the largest beneficiaries, each receiving roughly 1.5 billion reais. Alongside Cargill, China’s Cofco, and Brazil’s Amaggi, these firms are signatories to the Amazon Soy Moratorium signed in 2006 with the federal government and environmental groups. The moratorium prohibits the purchase of soy grown on land deforested after 2008 and is widely credited as one of the most effective tools for slowing deforestation in the Amazon. Researchers estimate that without the pact, ...