Agricultural financing stock via Fiagros grows 3,5%

The stock of resources allocated to agribusiness through Fiagros (Agribusiness Chain Investment Funds) at the end of August this year was already 5,3% higher than that recorded in December 2023, according to the new edition of our Market Analysis Report, available on Anbima Data (our market data and statistics platform). The amount totaled R$40 billion in August, compared to R$38 billion at the end of 2023.

“Despite still having less representation compared to traditional forms of financing, Fiagros have been rapidly gaining ground since they were created in 2021. The new regulations and tax incentives, combined with the flexibility that these portfolios propose, boost their potential for expansion. Between 2022 and the most recent data, the assets of these funds grew fourfold”, says our director, Sérgio Cutolo. 

The growth rate of the Fiagros stock from January to August was similar to that recorded for LCAs (Agribusiness Credit Letters), at 6,1%. These bank-issued securities are currently the financing product for rural activities with the largest stock (R$487 billion), followed by CPRs (Rural Product Notes), with R$398 billion. 

Among all financing products – in addition to Fiagros, LCAs, CRAs (Agribusiness Receivables Certificates) and CDCAs (Agribusiness Credit Rights Certificates) – CPRs showed the highest percentage growth in the period from January to August: 33,5%. CRAs increased their stock by 14,9% (to R$147 billion) and CDCAs by 25,8% (to R$39 billion). 

Industry Overview

The growth of Fiagros was accelerated both in terms of the number of funds and in terms of equity. From August 2023 to August 2024, the number of existing Fiagros increased by 58%, reaching 116 funds, while the industry's net equity increased by 141%, reaching R$41,7 billion.

The report highlights that the market environment for these products currently faces several challenges, the main ones being high interest rates and the impacts of extreme weather events, which can increase credit risk. “The high Selic rate increases the financial costs of production, with direct negative effects on producers’ cash flow. This intensifies the risk of default, especially in cases of crop failure,” Cutolo notes.

It is no coincidence that the adverse scenario for agribusiness has reduced the difference between dividends paid by real estate Fiagros and traditional real estate funds. In 2023, this gap was 2,2% (with Fiagros ahead), a percentage that fell to 0,8% this year.