Farm delinquency rate rises to 8.8% in first quarter - Valor International

Brazilian farmers are becoming increasingly indebted. Amid factors such as tight profit margins and restricted access to credit, the delinquency rate among the rural population reached 8.8% in the first quarter of this year, up 1.2 percentage points from the same period in 2025, according to a survey by Serasa Experian.

The indicator, which increased throughout last year, tracks overdue debts held by individuals that have remained unpaid for more than 180 days and were contracted with companies operating in agribusiness-related sectors.

“The gradual increase in delinquency shows that, at the beginning of 2026, rural producers were still facing challenges in rebuilding their financial capacity. Even with a more favorable outlook for some agribusiness segments, the effects of previous cycles marked by high costs, price volatility, and tighter credit conditions continue to weigh on cash flow and repayment capacity across the sector,” said Marcelo Pimenta, head of agribusiness at Serasa Experian.

According to the survey, producers with no registered rural property information—potential tenants or members of family or business groups—posted the highest delinquency rate, at 11%. Large landowners followed, with a 9.9% rate. Medium-sized producers (8.6%) and small producers (8.3%) recorded the lowest delinquency levels in the analysis by farm size.

Among Brazil’s regions, the North posted the highest delinquency rate among individual rural producers in the first quarter of 2026, at 13.2%. It was followed by the Northeast (10.2%) and the Central-West (10.1%). The Southeast (7.3%) and the South (6.2%) recorded the country’s lowest rates.

Serasa also highlighted significant differences in delinquency levels by age group.

“Delinquency among individual rural producers is concentrated in what can be considered the economically most active segment of the population. In the first quarter of 2026, the highest rates were recorded among producers aged 30 to 39, followed by those aged 18 to 29 and 40 to 49,” the company said.

Among producers aged 50 and older, delinquency rates declined steadily, falling below 8.7%, indicating a lower incidence of overdue debt among older farmers.