From Folha de S.Paulo · · 50s
Brazilian farmers face worst credit crisis in history
Rising interest rates, falling commodity prices and climate damage have squeezed farmers' income and spread debt through the supply chain.
In brief
Rising interest rates, falling commodity prices and climate damage have squeezed farmers' income and spread debt through the supply chain. Brazilian agribusiness faces its worst credit crisis after interest rates rose, commodity prices fell and climate damage cut farm income. Originally reported by Folha de S.Paulo.
How farmers got into debt
When the Selic benchmark interest rate was close to two percent, credit was abundant and commodity prices were rising, Brazilian farmers made major investments in land and machinery.
The crisis hits hard
Higher interest rates, falling international prices, geopolitical events that drove up costs, and drastic climate changes reduced farmers' income and their ability to meet financial obligations.
Worst cycle in history
Banco do Brasil's president Tarciana Medeiros said the bank is going through the most severe cycle of agricultural credit costs in its history.
“We are going through the most severe cycle of agricultural credit costs in our history.”
The big picture
Brazilian agribusiness faces its worst credit crisis after interest rates rose, commodity prices fell and climate damage cut farm income.
