“… high costs, greater selectivity and more limited access to financing…”
Cleiton Gauer is Superintendent at the Mato Grosso Institute of Agricultural Economics (IMEA), an agronomist graduated from the Federal University of Pelotas, with a postgraduate degree in Business Management from Fundação Dom Cabral.
AgriBrasilis – How do Bankruptcy Protection impact agribusiness in Mato Grosso?
Cleiton Gauer – Requests for Bankruptcy Protection in Mato Grosso’s agribusiness sector have been increasing since 2023, with the state leading the country in filings by individual farmers and, as of 2024, also among legal entities.
This trend affects the sector beyond the farmers directly involved, putting pressure on the entire agro-industrial chain. The concentration of renegotiations impacts the cash flow of input suppliers, cooperatives and trading companies, in addition to raising risk perception within the financial system.
As a result, stricter credit standards and capital restrictions are observed in subsequent crop seasons. Thus, the rise in Bankruptcy Protection contributes to a more selective and more expensive credit environment for the agribusiness in the State of Mato Grosso.
AgriBrasilis – What is the credit scenario?
Cleiton Gauer – The rural credit scenario in Mato Grosso for the 2025/26 crop season remains restrictive, with high costs, greater selectivity and more limited access to financing. After a period of strong expansion between the 2017/18 and 2023/24 seasons, when the volume of credit used in the state grew 174.33%, from US$ 3.25 billion to US$ 8.9 billion, a slowdown has been observed starting in 2024/25, a trend that continues into the 2025/26 season.
This inflection occurs in a context of higher interest rates, tighter operating margins, still-elevated production costs and increased risk perception, intensified by higher delinquency rates and the rise in Bankruptcy Protection filings across the agro-industrial chain. In response, banks and other financial agents have adopted stricter lending criteria, with increased collateral requirements and greater selectivity in operations. Public funding resources have been losing ground.
In summary, credit in the state remains available, but it is more expensive, more selective and concentrated among lower-risk profiles, limiting the expansion of financing and requiring greater financial management capacity from farmers.
AgriBrasilis – What has changed in collateral requirements for farmers?
Cleiton Gauer – There has been a clear and well-documented tightening of collateral requirements.
Main changes:
• Strengthening of fiduciary liens, especially in bank operations.
• More rigorous adoption of profile assessment metrics.
• Priority given to operations with lower risk exposure, favoring farmers with solid asset structures, track records and governance.
IMEA’s Funding Survey shows that despite the increased participation of the financial system (35.42% of production costs), this credit has been granted under stricter and more selective conditions, not representing any easing of the market.
AgriBrasilis – When credit tightens, what is the first adjustment farmers make?
Cleiton Gauer – The farmer’s first adjustment is financial and operational, before any deeper production-related decisions.
The most common sequence is:
• Reduction or postponement of investments (adjustments in cultivated area and machinery fleets);
• Extension of payment terms with suppliers;
• Adjustment of the technology package, prioritizing cost and efficiency—greater use of generics and review of marginal application doses;
• Renegotiation of land leases and service contracts;
• Increased use of own resources, especially barter operations.
AgriBrasilis – Why are farmers relying more on bank credit?
Cleiton Gauer – Farmers are turning more to bank credit out of necessity, not preference.
Key indicators include:
• A sharp contraction among input dealers, whose participation fell from 11.45% to 5.25%, due to Bankruptcy Protection;
• Reduced availability of traditional trade credit, especially on deferred payment terms;
• Greater financial robustness of banks, which have been able to absorb part of the risk left by other agents;
“… high costs, greater selectivity and more limited access to financing…”
Cleiton Gauer is Superintendent at the Mato Grosso Institute of Agricultural Economics (IMEA), an agronomist graduated from the Federal University of Pelotas, with a postgraduate degree in Business Management from Fundação Dom Cabral.
AgriBrasilis – How do Bankruptcy Protection impact agribusiness in Mato Grosso?
Cleiton Gauer – Requests for Bankruptcy Protection in Mato Grosso’s agribusiness sector have been increasing since 2023, with the state leading the country in filings by individual farmers and, as of 2024, also among legal entities.
This trend affects the sector beyond the farmers directly involved, putting pressure on the entire agro-industrial chain. The concentration of renegotiations impacts the cash flow of input suppliers, cooperatives and trading companies, in addition to raising risk perception within the financial system.
As a result, stricter credit standards and capital restrictions are observed in subsequent crop seasons. Thus, the rise in Bankruptcy Protection contributes to a more selective and more expensive credit environment for the agribusiness in the State of Mato Grosso.
AgriBrasilis – What is the credit scenario?
Cleiton Gauer – The rural credit scenario in Mato Grosso for the 2025/26 crop season remains restrictive, with high costs, greater selectivity and more limited access to financing. After a period of strong expansion between the 2017/18 and 2023/24 seasons, when the volume of credit used in the state grew 174.33%, from US$ 3.25 billion to US$ 8.9 billion, a slowdown has been observed starting in 2024/25, a trend that continues into the 2025/26 season.
This inflection occurs in a context of higher interest rates, tighter operating margins, still-elevated production costs and increased risk perception, intensified by higher delinquency rates and the rise in Bankruptcy Protection filings across the agro-industrial chain. In response, banks and other financial agents have adopted stricter lending criteria, with increased collateral requirements and greater selectivity in operations. Public funding resources have been losing ground.
In summary, credit in the state remains available, but it is more expensive, more selective and concentrated among lower-risk profiles, limiting the expansion of financing and requiring greater financial management capacity from farmers.
AgriBrasilis – What has changed in collateral requirements for farmers?
Cleiton Gauer – There has been a clear and well-documented tightening of collateral requirements.
Main changes:
• Strengthening of fiduciary liens, especially in bank operations.
• More rigorous adoption of profile assessment metrics.
• Priority given to operations with lower risk exposure, favoring farmers with solid asset structures, track records and governance.
IMEA’s Funding Survey shows that despite the increased participation of the financial system (35.42% of production costs), this credit has been granted under stricter and more selective conditions, not representing any easing of the market.
AgriBrasilis – When credit tightens, what is the first adjustment farmers make?
Cleiton Gauer – The farmer’s first adjustment is financial and operational, before any deeper production-related decisions.
The most common sequence is:
• Reduction or postponement of investments (adjustments in cultivated area and machinery fleets);
• Extension of payment terms with suppliers;
• Adjustment of the technology package, prioritizing cost and efficiency—greater use of generics and review of marginal application doses;
• Renegotiation of land leases and service contracts;
• Increased use of own resources, especially barter operations.
AgriBrasilis – Why are farmers relying more on bank credit?
Cleiton Gauer – Farmers are turning more to bank credit out of necessity, not preference.
Key indicators include:
• A sharp contraction among input dealers, whose participation fell from 11.45% to 5.25%, due to Bankruptcy Protection;
• Reduced availability of traditional trade credit, especially on deferred payment terms;
• Greater financial robustness of banks, which have been able to absorb part of the risk left by other agents;
• Inclusion of proprietary credit lines from private banks.
As a result, the Financial System now accounts for 35.42% of soybean production financing in Mato Grosso, becoming the main financier of the 2025/26 crop season.
AgriBrasilis – Which instruments are filling the gap left by traditional credit (CPR, barter, etc.)?
Cleiton Gauer – The space left by traditional credit is being filled by a combination of private and structured instruments:
• CPR (financial and physical) – A relevant private credit tool, central in restrictive scenarios.
• Structured barter – Gaining relevance, especially via multinationals and trading companies, with greater risk control.
• Structured capital market operations – CRA, CDCA and FIDC, more common for medium and large farmers.
• FIAGROs (Agro-Industrial Production Chain Investment Funds) – Still present, though with more selective appetite.
• Self-financing – Use of own capital from the previous harvest, reducing future liquidity.
• Forward sales with price hedges – Used as a mechanism to unlock credit.
Read More:
Brazilian Union of the Plant Protection Industry on the Use of Atrazine in the Country
• Inclusion of proprietary credit lines from private banks.
As a result, the Financial System now accounts for 35.42% of soybean production financing in Mato Grosso, becoming the main financier of the 2025/26 crop season.
AgriBrasilis – Which instruments are filling the gap left by traditional credit (CPR, barter, etc.)?
Cleiton Gauer – The space left by traditional credit is being filled by a combination of private and structured instruments:
• CPR (financial and physical) – A relevant private credit tool, central in restrictive scenarios.
• Structured barter – Gaining relevance, especially via multinationals and trading companies, with greater risk control.
• Structured capital market operations – CRA, CDCA and FIDC, more common for medium and large farmers.
• FIAGROs (Agro-Industrial Production Chain Investment Funds) – Still present, though with more selective appetite.
• Self-financing – Use of own capital from the previous harvest, reducing future liquidity.
• Forward sales with price hedges – Used as a mechanism to unlock credit.
Read More:
Brazilian Union of the Plant Protection Industry on the Use of Atrazine in the Country