According to data from the Food and Agriculture Organization of the United Nations (FAO), in 2021 the world produced approximately USD6 trillion in agribusiness products at current values, with Brazil accounting for 2.6%, equivalent to USD158 billion and ranking 5th in the world for production in terms of value. Considering the value of the main agrifood commodities consumed in the world, Brazil accounts for 10.3% of all production, behind only China, the United States and India. The entire agrifood chain contributes over a quarter of Brazil’s overall economic output (estimated at roughly 23% to 26%), according to data tracked by Cepea. The total monetary value of farm-gate and livestock output is projected at over BRL1.5 trillion, demonstrating strong domestic production volumes. Brazil utilises roughly 30% of its land area for farming and pasture, standing as a top global producer of grain and protein.

Brazil is a global agricultural powerhouse and leads the world in the export of several key commodities in the agricultural sector, such as soybeans, cotton, beef and orange juice. It is already the largest exporting country in the world (when not considering economic blocs such as the European Union), surpassing its biggest competitor in the international food trade – the USA – since 2023. The Brazilian agricultural supply chain functions through an integrated, highly scaled network spanning inputs, production, processing and export logistics.

Agribusiness is the most internationalised sector of the Brazilian economy, responsible for 27% of GDP, 20% of jobs and almost half of the country’s exports. Total Brazilian agribusiness exports reached USD148.4 billion in 2024 (considering the USDA agribusiness classification), consolidating the country as the third largest exporter of agro products in the world, behind the European Union and the USA. This performance was driven mainly by the growth in shipments of soy, meats (beef, pork and poultry), sugar, corn and coffee.

An analysis of the sector’s trade data shows a high concentration in both products and destination markets. Soybeans and meat alone account for 54% of Brazilian agribusiness exports. As for the destinations of these products, China and other Asian countries absorb approximately half of Brazil’s agricultural exports. Despite the high concentration in a few products and destinations, the Brazilian strategy has achieved very positive results in the agribusiness trade balance. In addition to leading the world market share of the main exported agricultural commodities, exports of processed agricultural items have also grown at an average annual rate of 8.4%, surpassing Brazil’s main competitors, such as the USA and the European Union.

Key Policy Instruments

Brazilian agricultural policies are developed nationally by the Secretariat of Agricultural Policy (SPA), an agency directly subordinate to the Brazilian Ministry of Agriculture and Livestock. The SPA’s role includes:

• developing policies for rural credit, marketing support, storage and supply of agricultural products;
• promoting studies, diagnoses and assessments of the effects of economic policy on agricultural production systems;
• conducting the Rural Insurance Premium Subsidy Programme; and
• preparing and disseminating the Agricultural Zoning of Climatic Risk and the Agricultural and Livestock Plan (PAP), which is a planning and management instrument for public policies for Brazilian agriculture. The PAP consolidates government actions, programmes and guidelines for the sector, which are essential for decision-making by rural producers and other economic agents involved in agribusiness.

Rural Credit and the Harvest Plan

In terms of public policy for the promotion of Brazilian agriculture, the policies to highlight are Crédito Rural (Rural Credit), Plano Safra (the Harvest Plan) and the Agro Law, which regulates private investment. Rural credit is available to rural producers, family farmers, co-operatives and other entities linked to the sector, based on obligations imposed on financial institutions (public banks, private banks, credit unions) that operate specific lines of financing such as PRONAF and PRONAMP, among others.

The Harvest Plan is published annually and offers lines of credit, incentives and agricultural policies for medium and large producers at subsidised interest rates.

Brazil’s primary agricultural financing framework is rooted in the National Rural Credit System and enhanced by modern legislative milestones such as the “Agribusiness Law” (Law No 11.076/2004) and the package integrating the Economic Freedom Law and the Agribusiness Law (Law No 13.986/2020); it has fundamentally transformed how the country’s vast agricultural sector secures capital. The objective of this legal framework is to expand access to private investment by refining regulations governing the Rural Product Note (Cédula de Produto Rural – CPR), which is the primary instrument used by rural producers to raise private funds, as well as other financing vehicles such as FIAGROs, CRAs and FIDCs.

In addition to streamlining traditional production financing operations backed by collateral such as land, crops and other assets, the new legislation also optimises the fundraising process for various initiatives, including regenerative agriculture and environmental conservation and preservation, while introducing significant changes to the sector’s financial operations and collateral arrangements.

Agricultural Authorities

Agribusiness in Brazil is subject to a distributed regulatory framework involving federal ministries, regulatory agencies, public authorities and financial regulators. The Ministry of Agriculture and Livestock (MAPA) is the principal federal authority for agricultural policy and sectoral regulation, including matters relating to agricultural production, animal and plant health, agricultural inputs, agricultural policy, and the promotion of agribusiness.

Financial and Capital Markets Regulators

The Central Bank of Brazil (Banco Central do Brasil – BCB) and the National Monetary Council (Conselho Monetário Nacional – CMN) are particularly relevant to rural credit and agribusiness finance. The BCB co-ordinates and supervises compliance with the rural credit framework, while the CMN establishes the applicable regulatory rules through the Manual of Rural Credit and related resolutions.

Land and Environmental Authorities

The Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários – CVM) regulates the capital markets structures used in agribusiness, including investment funds and securitisation structures falling within its jurisdiction. The National Institute for Colonization and Agrarian Reform (Instituto Nacional de Colonização e Reforma Agrária – INCRA) is relevant to rural land ownership, registration and transactions involving foreign parties.

Environmental regulation is referred to federal, state and local authorities, including the Brazilian Institute of Environment and Renewable Natural Resources (Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renováveis – IBAMA) and state environmental agencies, depending on the activity and the applicable allocation of competencies.

ANVISA has responsibilities relating to health and food safety, and participates in the regulatory framework applicable to pesticides, together with MAPA and the environmental authorities. CONAB, a public company linked to the Ministry of Agrarian Development and Family Farming, contributes to agricultural market intelligence, public stocks, food supply policies and price support mechanisms.

The regulatory framework is therefore decentralised, and the relevant authority depends on the nature of the activity or transaction. This is particularly important for transactions involving multiple aspects of agribusiness, where financial, land, environmental, health and commercial regulations may apply simultaneously.

Agribusiness is a complex activity, ranging from rural production to the marketing of products, involving issues such as rural property and land use, contracts, environmental legislation and labour relations. In this sense, agribusiness relates to different aspects of the law:

• agrarian law is the legal basis for agribusiness, regulating rural property, land use, leasing and rural credit, among other matters;
• environmental law regulates pollution control, the use of pesticides and sustainable agricultural practices;
• tax law regulates taxation on rural production and the marketing of products;
• civil and commercial law regulates the purchase and sale of inputs, agricultural products and the structuring of business involving contracts and commercial relations;
• labour law regulates the rights and duties for rural workers;
• intellectual property rights regulate the ownership of new cultivars, seeds and agricultural products; and
• international law regulates the international trade of agricultural products.

Constitutional, agrarian, environmental and land use regulations govern the use of rural land in Brazil. The Brazilian Constitution recognises the social function of property as a fundamental principle applicable to rural property, and rural land is subject to requirements relating to its productive use, compliance with applicable environmental rules and the observance of labour and other social obligations.

Rural land use is also subject to specific restrictions arising from environmental legislation, including rules governing Permanent Preservation Areas (Áreas de Preservação Permanente – APPs), Legal Reserves and the conversion of native vegetation to alternative land uses. The Brazilian Forest Code (Law No 12,651/2012) establishes minimum Legal Reserve requirements, which vary according to the location and characteristics of the property, including higher requirements for properties located in the Legal Amazon.

Depending on the location and nature of the activity, state and municipal regulations can also affect the use of rural land. In addition, specific requirements may apply to the use of water resources, vegetation suppression, environmental licensing, pesticides, and activities conducted in protected or strategically relevant areas.

Non-compliance with applicable requirements may result in administrative sanctions, civil liability and, in certain circumstances, criminal liability. Rural properties may also be subject to expropriation for social interest where the constitutional requirements relating to the social function of property are not complied with.

Brazilian law imposes restrictions on the acquisition and leasing of rural land by foreign individuals and entities, and by certain Brazilian entities deemed equivalent to foreign entities. Law No 5,709/1971 and Decree No 74,965/1974 form the principal framework under which foreign individuals and legal entities are subject to specific requirements, area limitations and, in certain circumstances, prior government authorisation.

The restrictions include limits on the aggregate area of rural land that may be acquired or leased by foreign parties in each municipality, as well as restrictions based on nationality. Additional requirements apply, depending on the size and location of the property. Properties located in border areas or areas considered essential to national security may require prior approval from the National Defence Council.

The regime also extends to Brazilian legal entities controlled by foreign individuals or entities in the circumstances established by Law No 5,709/1971. The distinction between foreign investment in agribusiness businesses and the direct or indirect acquisition or use of rural land is therefore important when structuring investments in the sector.

The legal framework has also been the subject of significant recent judicial scrutiny. In April 2026, the Federal Supreme Court unanimously upheld the constitutionality of restrictions applicable to rural land acquisitions by Brazilian companies controlled by foreign parties, and confirmed the federal government’s jurisdiction to authorise such transactions.

Accordingly, foreign investors considering an investment involving rural land should assess not only the ownership structure of the relevant Brazilian entity, but also the nature of the transaction, the location and size of the property, existing foreign ownership in the relevant municipality and any applicable authorisation requirements.

Forest Code and Rural Environmental Registry

Agricultural operations in Brazil are subject to a broad environmental compliance framework covering:

• native vegetation;
• environmental regularisation;
• water resources;
• environmental licensing;
• pesticides; and
• other aspects of natural resource use.

The principal framework for the protection of native vegetation is the Forest Code (Law No 12,651/2012), which establishes rules concerning Permanent Preservation Areas, Legal Reserves, native vegetation and the Rural Environmental Registry (Cadastro Ambiental Rural – CAR).

Environmental Licensing

The CAR is a mandatory public electronic registry for rural properties and possessions. It integrates environmental information for purposes of monitoring, planning, environmental regularisation and prevention of deforestation. It is also an essential element in assessing the environmental status of rural property.

Environmental regularisation may involve the recovery or compensation of environmental liabilities relating to Permanent Preservation Areas, Legal Reserves and other protected areas. The applicable framework may also require adherence to a state-level Environmental Regularisation Programme (Programa de Regularização Ambiental – PRA) or the execution of commitments to remedy environmental deficits.

Federal, state and local rules within the competencies established by Brazilian environmental legislation regulate environmental licensing. A significant recent development was the enactment of Law No 15,190/2025, the General Environmental Licensing Law, which established general rules for the licensing of activities and undertakings that use environmental resources or are potentially polluting or capable of causing environmental degradation.

The new framework contains specific provisions relevant to agricultural activities. Certain agricultural activities (including the cultivation of agricultural species and extensive and semi-intensive livestock farming) may not be subject to environmental licensing when the statutory requirements relating to the regularity or environmental regularisation of the rural property are satisfied. This exemption does not eliminate other environmental obligations, including requirements concerning native vegetation suppression, water use, pesticides and soil conservation.

Pesticides and Environmental Risk

The use and regulation of pesticides is also subject to specific federal legislation. Law No 14,785/2023 establishes rules governing the research, production, registration, commercialisation, use, importation, exportation, disposal and inspection of pesticides and related products.

Environmental compliance has therefore become relevant not only from a regulatory and liability perspective, but also in financing, investment and transactional due diligence. The environmental status of a rural property may affect its value, financing capacity, contractual arrangements, and the allocation of environmental risks among the parties.

Agribusiness

There is no single statutory definition of “agribusiness” in Brazil. The concept is economic and institutional, and encompasses the activities conducted throughout the agricultural production chain, including the supply of inputs, primary agricultural production, processing, industrialisation, distribution, commercialisation and financing.

Brazilian legislation nevertheless defines or refers to specific activities and participants within the agricultural value chain for regulatory purposes. For example, the legislation governing the Rural Product Note (CPR) defines the relevant rural products by reference to agricultural, livestock, planted forestry, fishing and aquaculture activities, as well as certain related activities.

Rural Producer

The concept of a rural producer in Brazil is not unified and is addressed differently by different legal instruments. Normative Instruction RFB No 2,110/2022 adopts a functional approach, encompassing individuals and legal entities engaged in rural activities. By contrast, the CPR Law (Law No 8,929/1994) and Law No 11,076/2004 adopt more specific approaches to the concept of a rural producer. This lack of uniformity may create legal uncertainty when determining whether a party qualifies as a rural producer for purposes of financial and structured transactions.

CNAE Classification

The CNAE (National Classification of Economic Activities) is frequently used as a practical criterion to identify the economic activity conducted by an issuer or other party involved in an agribusiness transaction. However, the CNAE code alone is not sufficient to legally determine whether an entity qualifies as a rural producer. The analysis should also consider other elements, including the entity’s corporate purpose, operational and commercial documentation, and evidence of its actual engagement in rural activities.

The absence of a single, uniform concept of “rural producer” may create interpretative differences across the legal and regulatory framework applicable to agribusiness finance. Different statutes and regulations may establish eligibility requirements by reference to the nature of the debtor, the underlying activity, the origin of the receivable or the type of transaction involved.

This issue may become particularly relevant in structured finance transactions, where the eligibility of a debtor or receivable may determine whether an asset can be used as collateral or as underlying assets for agribusiness securities. The interaction between the CPR framework and the rules governing the Agribusiness Credit Rights Certificate (Certificado de Direito Creditório do Agronegócio – CDCA), Agribusiness Credit Note (Letra de Crédito do Agronegócio – LCA) and Agribusiness Receivables Certificate (Certificado de Recebíveis do Agronegócio – CRA) is therefore an important element of legal analysis.

In practice, the assessment may require an analysis of the debtor’s actual activities, corporate purpose, contractual relationships and supporting documentation, rather than reliance on a single formal classification.

CPR

Brazil has a diversified system of instruments for financing agricultural activities and agribusiness supply chains. The CPR remains a central instrument for private financing, and may provide for either physical or financial settlement. CPRs may be issued with or without collateral, and are used in transactions involving producers, purchasers, financial institutions and other participants in the agricultural supply chain.

Other Financing Instruments

In addition to CPRs, rural and agribusiness financing may involve bank credit, trade financing, agribusiness securities and capital markets structures. The legal framework also permits the use of different forms of collateral and guarantees, allowing financing structures to be adapted to the nature of the underlying agricultural activity and the profile of the debtor.

The choice of financing instrument depends on the stage of the agricultural value chain, the nature of the underlying receivable or obligation, the profile of the financing party and the collateral available

Export-oriented financing is relevant to agricultural businesses, particularly for co-operatives, trading companies and other businesses involved in the international commercialisation of agricultural commodities. Pre-export financing and Advance on Exchange Contracts (Adiantamento sobre Contrato de Câmbio – ACC) may be used to provide funding against expected export proceeds or foreign exchange transactions.

These structures may be combined with contractual rights, receivables and other forms of collateral, depending on the transaction. Their legal and regulatory treatment depends on the nature of the financing, the parties involved, the underlying export transactions and the applicable foreign exchange and financial regulations.

In practice, export financing may therefore form part of broader working capital or structured-finance arrangements for agricultural businesses.

Agribusiness Securities

Capital markets instruments play a key role in financing the Brazilian agricultural sector. CRAs, CDCAs and debentures are among the instruments used in agribusiness-related financing and may be structured with diverse types of underlying credit rights and contractual arrangements.

Eligibility of Underlying Assets

The eligibility of the underlying assets is a central legal consideration in these transactions. CMN Resolution No 5,118/2024 and subsequent amendments have significantly developed the regulatory framework governing the collateral of CRAs, CRIs and CDCAs. Resolution CMN No 5,212/2025 in particular has further amended the rules applicable to the underlying assets of these instruments, including restrictions relating to debt instruments involving legal entities whose principal business activity is not in the relevant sector.

As a result, legal analysis of agribusiness capital markets transactions may require detailed review of the nature and origin of the underlying receivables, the activities of the relevant debtors and guarantors, the contractual chain and compliance with the applicable eligibility requirements.

FIDCs

Investment funds and securitisation structures are important sources of private capital for the agricultural sector. FIDCs may be used to acquire and finance receivables, while FIAGROs provide a regulated investment fund structure specifically directed to assets and activities connected with agribusiness production chains.

FIAGROs

The regulatory framework for FIAGROs has evolved significantly since the previous edition of this Guide. Resolution CVM No 214/2024 introduced specific rules for FIAGROs through Annex VI to Resolution CVM No 175, replacing the previous experimental framework under Resolution CVM No 39. The new rules entered into force on 3 March 2025, with existing FIAGROs required to adapt by 30 September 2025.

The current framework provides for a broad range of eligible assets, including:

• rural real estate rights;
• equity interests in companies forming part of agribusiness chains;
• financial assets and securities issued by participants in those chains;
• agribusiness receivables;
• CRAs and other securitisation instruments; and
• certain carbon-related assets.

The regulatory development of FIAGROs has therefore strengthened their role as a structured investment vehicle for agricultural assets, while also introducing more detailed requirements concerning investment policies, disclosure, governance and eligible assets.

Common Forms of Security

Agribusiness financing transactions may involve a variety of collateral and guarantee structures, depending on the nature of the underlying asset, the financing instrument and the debtor’s profile. Common structures may include fiduciary security interests, pledges, mortgages, receivables assignments and guarantees provided by the debtor or third parties.

Rural Property in Trust

The rural property in trust regime (patrimônio rural em afetação), introduced by Law No 13,986/2020 and subsequently amended, is particularly relevant to agricultural finance. Under this regime, a rural property or a portion thereof may be submitted to a special legal regime and used as collateral for a CPR or for financial operations through a Rural Real Estate Note (Cédula Imobiliária Rural – CIR). The affected property constitutes a real right and is subject to specific rules concerning its use and enforcement.

Fiduciary Security

Fiduciary security structures may also be relevant because they can provide creditors with enforcement mechanisms that differ from ordinary judicial execution. The choice of collateral is therefore a critical component of transaction structuring and should take into account the nature of the asset, registration requirements, enforceability and the debtor’s insolvency or restructuring risk.

Legal advisers play a key role throughout the planning and execution of financing transactions in the agriculture sector. Their role may include:

• analysing the legal eligibility of the parties and underlying assets;
• assessing regulatory requirements;
• conducting legal due diligence;
• structuring the transaction;
• preparing and negotiating the relevant documentation; and
• providing legal opinions.

In structured transactions, legal advisers may also be involved in identifying potential regulatory or enforceability risks and in designing alternative structures or contractual protections to address those risks. This may be particularly relevant where the transaction involves different legal regimes, such as agribusiness, corporate, financial, environmental, real estate and tax regulations.

The legal analysis may therefore extend beyond the formal validity of the documents to the interaction between the underlying commercial activity and the regulatory requirements applicable to the financing structure.

Legal opinions are essential to agriculture sector financing structures, particularly where investors, financial institutions or other transaction participants require independent confirmation of the legal validity and enforceability of the structure. Depending on the transaction, a legal opinion may address matters such as:

• the capacity and authority of the parties;
• the validity and enforceability of the financing documents;
• the eligibility of debtors or receivables;
• the validity of collateral; and
• compliance with applicable regulatory requirements.

Legal opinions may be particularly relevant where the transaction involves the interaction of different legal and regulatory regimes or where the eligibility of the underlying assets depends on the nature of the debtor’s activities and supporting documentation.

Legal due diligence in agriculture sector financings generally focuses on the legal status of the debtor, the nature and origin of the underlying assets or receivables, and the enforceability of the relevant contractual and security arrangements. Depending on the structure, the review may include:

• the debtor’s corporate purpose and CNAE classification;
• evidence of its actual agricultural or agribusiness activities;
• commercial contracts;
• receivables documentation;
• licences;
• real estate documentation;
• environmental compliance; and
• existing security interests.

In transactions involving CRAs, CDCAs or other structured instruments, particular attention may be required to establish the eligibility of the relevant debtor and receivables under the applicable regulatory framework. The analysis may therefore extend beyond a conventional corporate due diligence exercise and require examination of the underlying commercial activity.

Regulatory uncertainty may influence the allocation of legal and commercial risks in agriculture sector transactions. Where the eligibility of a debtor, receivable or collateral depends on the interpretation or interaction of different legal and regulatory provisions, transaction parties may seek additional contractual protections, legal opinions or alternative structures to mitigate potential risks.

In this context, legal advisers may contribute to identifying regulatory risks at an early stage and assessing their potential impact on the transaction structure. Depending on the circumstances, the parties may allocate specific risks through representations and warranties, conditions precedent, indemnities, covenants, eligibility criteria or other contractual mechanisms.

Regulatory considerations may therefore influence not only the legal documentation but also the economic structure of the transaction and the allocation of risks among investors, financiers, originators and other participants.

Shaped by a mix of federal, state and municipal regulations, Brazil’s tax regime for agribusiness is inherently complex, yet it incorporates specific exemptions and simplified frameworks designed to foster food security and incentivise rural production. A producer’s specific tax treatment depends on their legal structure (individual v corporate entity), the nature of their operations, and their geographic location. The sector is currently undergoing a structural transformation due to the ongoing implementation of the Tax Reform.

Key Federal Taxes

The main federal direct taxes, also applicable to the agribusiness industry, are as follows.

• Corporate Income Taxes – Imposto de Renda da Pessoa Jurídica (IRPJ) and Contribuição Social sobre o Lucro Líquido (CSLL) – are levied at an approximate combined rate of 34%, typically under one of the following regimes:
1. the Presumed Profit Regime is common for mid-sized producers, applying fixed profit margins (usually 8% on the sale of goods or 32% on services) to gross revenue for tax calculation;
2. the Actual Profit Regime is required for larger companies (gross revenue exceeding BRL78 million) and uses actual accounting profits, allowing for the full deduction of operating expenses and rural tax losses, which can be carried forward indefinitely and without limitation on the amount to be offset against profits on the current year (other activities have an annual limitation of 30%); or
3. Simples Nacional is available to micro and small enterprises (up to BRL4.8 million in revenue), consolidating multiple taxes into a single monthly payment.
• Individual rural producers may pay Individual Income Tax (IRPF) on net income from rural activities (up to 27.5%) or opt for a simplified regime (applying a 20% presumed profit margin on revenues). Accumulated rural losses can be carried forward indefinitely to offset future agricultural income.
• Social Security Contribution (FUNRURAL): rural employers and individual producers contribute to social security through FUNRURAL, calculated either as a percentage of gross revenue from production or over the total payroll.

Indirect Taxation

Brazil is transitioning away from its legacy indirect tax system to a Dual Value-Added Tax (Dual VAT) model enacted by Constitutional Amendment No 132/2023 and regulated by Supplementary Law No 214/2025. The following taxes apply under the legacy system.

• ICMS: state-level VAT applying to the circulation of goods and services. Under the legacy system, basic food items and agricultural inputs frequently benefit from exemptions, reduced calculation bases or deferred collection.
• IPI: federal excise tax on industrialised products, generally zero-rated for unprocessed agricultural commodities (in natura).
• PIS and COFINS: rates for agribusiness sales are 3.65% (cumulative) or 9.25% (non-cumulative), depending on the corporate tax regime. However, essential raw commodities, basic food items and agricultural inputs frequently benefit from a 0% rate. To prevent tax cascading, sales by individual farmers to processors often operate under tax suspension, shifting the tax burden to the final stage. Agro-industries purchasing from exempt producers can also claim presumed credits to offset their liabilities on processed goods.

As of 2026, the Dual VAT framework (LC 214/2025 Implementation) replaces PIS, COFINS, IPI, ICMS and ISS with a unified Dual VAT regime comprising:

• Contribution on Goods and Services (CBS): a federal VAT replacing PIS, COFINS and IPI; and
• Tax on Goods and Services (IBS): a subnational VAT shared between states and municipalities, replacing ICMS and ISS.

The combined rate of CBS and IBS has not been yet decided as of August 2026, but it is expected to be between 26% and 28%.

Agribusiness-Specific Regime

LC 214/2025 establishes a differentiated regime for agribusiness, granting a 60% reduction in IBS and CBS rates for agricultural inputs and primary food products, alongside a complete exemption (zero rate) for items included in the National Basic Food Basket. Individual rural producers with annual revenues below specific legal thresholds may opt out of the IBS/CBS taxpayer status while allowing their corporate buyers to generate presumed tax credits.

Other Property and Transactional Taxes

Rural Land Tax (ITR) is an annual federal tax charged on rural landowners based on total area and land utilisation degree. Highly productive properties and areas designated for environmental preservation (eg, Legal Reserves and Permanent Preservation Areas – APPs) qualify for significant rate reductions or exemptions.

To foster agribusiness competitiveness, lower production costs and attract domestic and foreign capital, Brazil provides a comprehensive system of tax incentives and fiscal mechanisms. The most relevant are as follows.

• Export Tax relief: under both the current regime and the Dual VAT framework, exports of raw and processed agricultural commodities are constitutionally exempt, benefiting from zero-rating for IBS/CBS alongside full credit recovery for supply chain inputs.
• Subsidised credit and Plano Safra: through the annual Harvest Plan (Plano Safra), producers gain access to below-market financing. This acts as a core fiscal incentive and is tied to tax compliance and environmental validation via the CAR.
• Tax relief on agricultural inputs: essential inputs enjoy significant ICMS reductions or exemptions under state agreements (Convênios ICMS), as well as a mandatory 60% rate reduction under the IBS/CBS system.
• ITR environmental discounts: rural landowners who register protected areas can deduct these preservation zones directly from the taxable base of the ITR.

Agribusiness financing in Brazil relies heavily on dedicated capital market instruments, which benefit from targeted tax exemptions designed to mobilise private capital.

Exempt Capital Market Instruments

• CRAs and LCAs (Agribusiness Receivables Certificates/Credit Bills):
1. for individual investors, income and capital gains are exempt from Individual Income Tax (IRPF), subject to regulatory criteria and minimum holding periods; and
2. corporate investors are subject to standard corporate taxation (IRPJ/CSLL) or withholding tax (WHT) at regressive rates ranging from 15% to 22.5%.
• FIAGROs (Agribusiness Investment Funds):
1. for individual investors, distributed income is IRPF-exempt, provided quotas are traded on an organised market, the fund maintains at least 100 quota holders (Law No 14,754/2023), and no single individual holds 10% or more of total quotas or yields; and
2. corporate and non-qualifying investors are subject to standard corporate income tax upon distribution, redemption or sale.

Traditional Credit and Financing Instruments

• Agribusiness Product Certificates (CPRs):
1. physical and financial CPRs (CPR-F) carry no WHT or Financial Transactions Tax (IOF) at issuance; and
2. secondary market transfers and capital gains follow standard financial asset tax rules based on the investor’s regime (15% to 22.5% for individuals and Corporate Income Taxes).
• Export Credit Notes (NCEs) and Bank Credit Notes (CCBs):
1. interest yields incur WHT at regressive rates (22.5% to 15%) based on maturity, unless structured into exempt securitisation vehicles like CRAs.
• Export Pre-Payment (PPE):
1. foreign currency advances for future shipments benefit from a 0% rate on IOF and WHT on interest, provided physical exports occur within statutory deadlines.
• Transaction and Collateral Taxes:
1. Tax on Financial Transactions (IOF) is generally zero-rated for foreign exchange contracts (IOF-Câmbio) linked to agricultural export revenues and qualifying rural credit.
• Guarantees and Registry Fees:
1. granting in rem guarantees (eg, fiduciary transfer of land or crop pledges) does not trigger Real Estate Transfer Tax (ITBI), which applies only upon actual title transfer through enforcement or non-exempt corporate restructuring.

Agribusiness contracts may be enforced through judicial proceedings, including ordinary actions, enforcement proceedings based on enforceable instruments and specific-performance remedies, depending on the nature of the obligation and the documents supporting the claim.

Brazilian procedural law allows courts to order specific performance where appropriate. For obligations to do or refrain from doing something, the court may grant specific relief or adopt measures capable of producing an equivalent practical result. Obligations to deliver goods may likewise be subject to specific enforcement, with damage occurring where specific performance is impossible or otherwise appropriate under the applicable rules.

Agribusiness transactions may also benefit from the executory nature of certain instruments commonly used in the sector. CPRs, for example, are credit instruments that may support enforcement proceedings, with the applicable procedure depending on whether the obligation provides for physical or financial settlement. Brazilian courts have recognised the relevance of specific enforcement in disputes involving CPRs and agricultural products.

The enforcement strategy will therefore depend on:

• the nature of the contractual obligation;
• whether the relevant document qualifies as an enforceable instrument;
• the existence and type of collateral; and
• whether the debtor is subject to insolvency or judicial reorganisation proceedings.

Litigation remains an important mechanism for resolving agribusiness disputes in Brazil, particularly in disputes involving rural producers, supply contracts, credit obligations, guarantees and judicial reorganisation. At the same time, arbitration has become increasingly relevant for more complex commercial disputes, particularly where the parties are sophisticated businesses and the underlying contracts contain arbitration agreements. Arbitration may be particularly attractive in disputes involving long-term commercial relationships, commodities, supply chains, financing transactions and corporate arrangements, where the parties may value specialised decision-makers, procedural flexibility and confidentiality.

The increasing use of arbitration in agribusiness reflects the development of specialised expertise within the Brazilian arbitration community. The Brazilian arbitration framework is well established, and agribusiness has become one of the contexts in which specialised arbitration practice has developed.

Fiduciary Security Interests

Creditor protection in agribusiness transactions depends significantly on the type of collateral and the legal structure used to secure the underlying obligation. Brazilian law provides for both judicial and, in specific circumstances, extrajudicial enforcement mechanisms.

Fiduciary security interests (alienação fiduciária) may provide creditors with efficient enforcement mechanisms, including the consolidation of ownership and subsequent sale of the secured asset in accordance with the applicable statutory procedure. Federal Law No 14,711/2023 further developed the legal framework governing fiduciary security interests by introducing additional mechanisms for the enforcement and management of guarantees.

The same legislation also introduced broader mechanisms for extrajudicial enforcement of certain secured credits, including rules concerning the execution of mortgages. However, the statutory framework expressly excludes financing operations involving agricultural activities from the specific extrajudicial mortgage enforcement procedure established by Law No 14,711/2023.

Other Forms of Collateral

Other types of collateral commonly used in agribusiness financing, including pledges over agricultural products, receivables assignments and rural property in trust structures, are subject to their own enforcement rules. The effectiveness of the security therefore depends on the nature of the collateral, the registration requirements, the underlying financing instrument, and the debtor’s insolvency status.

Judicial Reorganisation

Other statutory rules have also preserved certain agribusiness-related claims or collateral from the effects of judicial reorganisation. The treatment of CPRs is particularly relevant in this context. In 2025, the Superior Court of Justice held that a credit represented by a CPR linked to a barter transaction does not become subject to judicial reorganisation merely because enforcement for delivery of the agricultural product is converted into enforcement for payment in money.

Where a party has failed to fulfil a contractual obligation, the available remedies will depend on the nature of the obligation, the contractual provisions and the circumstances of the default.

Brazilian law recognises specific performance as a primary remedy where the contractual obligation can still be performed. Courts may order a party to do something, refrain from doing something or deliver a specific asset, and may adopt the necessary measures to secure the practical effectiveness of the order. Conversion into damages may occur where specific performance is impossible or where the applicable legal requirements are satisfied.

In commercial and financing transactions, the contractual allocation of risk is also relevant. Parties may provide for termination rights, conditions precedent, liquidated damages, indemnification, penalties and other remedies applicable to a failure to close or perform.

Where the transaction involves an arbitration agreement, the dispute will be referred to arbitration, subject to the scope and validity of the arbitration clause. Where judicial proceedings are appropriate, interim or urgent relief may also be sought where necessary to preserve rights or prevent irreparable harm.

In agribusiness transactions, the appropriate remedy may also depend on the underlying asset or instrument. For example, disputes concerning the delivery of agricultural products under a CPR may involve specific enforcement of the delivery obligation, while financial CPRs and other monetary obligations may be enforced through the applicable monetary remedies.

Brazil’s focus on fertiliser manufacturing incentives, agricultural input inspections and traceability rules, alongside major discussions regarding credit reforms and international trade standards, are the most recent legal and regulatory developments:

• approved by Congress in August 2026, the Profert programme creates production tax credits and financing via BNDES to lower foreign dependency on fertilisers;
• Decree No 12,858/2026 updated plant nutrition and agricultural input regulations in February 2026 to align with the Self-Control Law framework; and
• MAPA enacted ordinances in April 2026 establishing the Fish Invoice for traceability and updating phytosanitary export rules.

In relation to upcoming reforms, two main discussions are on the table:

• the Agricultural Parliamentary Front (FPA) in the Congress is actively debating a fresh overhaul of the Lei do Agro to streamline private capital and lower funding costs for rural producers; and
• Brazil, like other major agricultural nations, is challenging new European Union residue limit proposals at the World Trade Organization, arguing that the rules disregard science-based risk assessments.

The Brazilian market has responded quickly to challenges and opportunities. Recently, traders established the Soy Moratorium in response to pressure from European entities and NGOs for the traceability of soy produced in the Amazon region, aiming to ensure the grain did not originate from newly deforested areas. The Brazilian judiciary has upheld the legality of private, voluntary zero-deforestation supply chain commitments, although friction with producers at the state level persists.

ESG considerations are profoundly transforming Brazilian agribusiness, shifting from mere voluntary, reputation-focused initiatives into decisive factors for market access, operational efficiency and credit availability.

Regarding market access, international buyers increasingly demand proof of zero deforestation, compelling key supply chains such as soy, beef, cotton and sugar to adopt advanced digital mapping and certification mechanisms; simultaneously, regulations like the European Union Deforestation-Free Products Regulation require exporters to demonstrate that commodities such as beef and soy were not produced on land deforested after 2020.

As for credit access, public financing instruments such as the federal Plano Safra (Harvest Plan) increasingly tie lower interest rates and favourable terms to the transition toward green practices and low-carbon agriculture. Institutional investors and rural credit providers penalise producers who fail to meet these criteria by restricting their access to capital, making ESG metrics fundamental to long-term financial viability.