Default affects 7,4% of the country's rural population

Unpublished information from Serasa Experian, the first and largest datatech in Brazil, shows that in the second quarter of this year, considering only debts that were due for more than 180 days and that were contracted in sectors related to the main agribusiness activities, default reached only 7,4% of the rural population that works as individuals in Brazil. Compared to the first three months of 2024, there was a slight increase of 0,3 percentage points.

According to Marcelo Pimenta, head of agribusiness at Serasa Experian, the situation can be seen as relatively positive, as the quarterly variation was very low. “Despite the difficulties in accessing credit, debt rollover, commodity price levels, and other challenges, such as climate events that affected financial stability in the countryside, the default rates in agriculture remained practically the same and the majority of rural landowners in the country are managing to honor their financial commitments and continue to maintain a positive balance for the sector.” 

In this study, stratification by size revealed that large landowners had the largest representation and 9,8% of them were impacted by default. Those who do not have a rural registry – tenants, people participating in economic groups or families – came next, with 9,3%. Medium-sized landowners accounted for 6,9% and small landowners were the least affected, with only 6,6%.

The more experience, the lower the default rate

Data collected by Serasa Experian also revealed that the older the rural property owner, the lower the default rate. Still regarding the second quarter of 2024, of those aged between 50 and 59, 7,2% had their names in the red. From this point on, the older the property owner, the lower the percentage. Check out the full information in the graph below:

Sectors related to agribusiness recorded an optimistic scenario

Still regarding the second quarter of this year, observing the sectors in which debts were contracted and registered as negative, generating the default rates analyzed in this study, it is possible to identify that debts with “Financial Institutions” – which finance activities in the field – accounted for the largest share, 6,5%. However, the percentages of defaulting rural property owners in the “Agricultural Sector” and “Other Related Sectors” were very small, 0,1% and 0,2%, respectively. These categories cover several products and services such as agro-processing and wholesale agro-trading industries, agricultural support services, production and resale of inputs and agricultural machinery, rural producers, non-life insurance companies, transportation and storage.

For the head of agribusiness at Serasa Experian, it is interesting to analyze that, in this scenario, the agricultural chain reveals an optimistic picture regarding the default of the rural population. “It is essential to reinforce this differentiation because, although in general only 7,3% of rural landowners are in default, in this segment the percentage remains very low”.

Southerners recorded mild default among other agricultural regions

The assessment by Agricultural Region, according to data from Serasa Experian, showed that default rates were lower in the South, reaching only 4,8%. In this sense, the head of agribusiness at Serasa Experian explains that it is necessary to consider the suspension of negative credit ratings in Rio Grande do Sul announced by ANBC (National Association of Credit Bureaus), which lasted for 60 days, due to the floods that occurred in the region. “This was a necessary initiative that may have influenced the low percentage in the State. In addition, southerners who work in the agribusiness sector have a long and positive history of experience and resilience during times of crisis, also counting on significant adherence to rural insurance instruments, which help mitigate risks.”

Next was the Southeast, with 6,2%, and the Central-West Agro, which scored 7,6%. See the complete data in the following graph: 

Exclusive

For the Serasa Experian Agribusiness Default Indicator, only people with debts overdue for more than 180 days and up to 5 years totaling at least R$1.000,00 were considered among those related to financing and agribusiness activities, such as, for example, financial institutions, agro-processing and wholesale agro-trading, agro-support services, production and resale of inputs and agricultural machinery, rural producers, non-life insurance companies, transportation and storage.