Financial crisis and debt in the countryside raises alarm in MT

The Mato Grosso Soybean and Corn Producers Association (Aprosoja MT) expressed concern about the increase in rural debt in the state and throughout Brazil. According to the entity, the combination of falling commodity prices, record increases in costs per hectare, restricted credit and high interest rates has put pressure on producers' finances.

In Mato Grosso, the so-called “Scissors Effect” – when revenues fall but costs remain high – has intensified. The average price of a bag of soybeans, which reached R$191,50 in 2022, is now below R$110 in several regions. At the same time, the average cost per hectare exceeds R$7.100, requiring a minimum productivity of 62 bags just to cover production costs.

Furthermore, Aprosoja MT highlights the increase in requests for judicial recovery by farmers and complains about difficulties in accessing credit, aggravated by measures such as the increase in IOF and the taxation of LCAs. The volume of rural credit destined for the state fell by 27,6% compared to the previous cycle.

The solutions advocated by the entity include securitization of debts, creation of emergency lines with compatible interest rates, review of the barter model, implementation of price support mechanisms and review of financial charges. Aprosoja MT also demands compliance with the Rural Credit Manual by financial institutions and the formulation of public policies that are more appropriate to the new reality of the sector.

The association emphasizes that producers do not want to default, but seek conditions to continue producing, investing and generating jobs. According to the entity, the lack of rapid and structural actions can compromise agricultural production, income generation and the economy of hundreds of municipalities in Mato Grosso.