As Congress weighs a bill to restructure rural debt, Brazilian farmers have begun delaying loan payments in anticipation of qualifying for the proposed relief program, driving up delinquency rates across the agricultural sector. At some financial institutions, the pace of overdue loan installments doubled in June.
The trend comes just ahead of the expected announcement of the 2026/27 Crop Plan on Tuesday (30), with no solution yet in place for the farm sector’s mounting debt burden. Financial market sources say the growing politicization of the issue and uncertainty surrounding the outcome of potential relief measures have further complicated the situation.
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