Rural default remains stable at the end of 2024

Default rates among Brazilian rural producers remained stable in the last three months of 2024, according to new data from Serasa Experian. The rate was 7,6%, the same percentage as the previous quarter, and just 0,8 percentage points higher than that recorded in the fourth quarter of 2023.

The survey considers debts overdue for more than 180 days contracted with companies linked to the main agribusiness activities. According to Marcelo Pimenta, head of agribusiness at Serasa Experian, the observed balance is the result of the tightening of credit granting, the use of predictive tools such as Agro Score and the resilience of the sector even in the face of operational challenges.

Small landowners recorded the lowest default rate in the period (6,9%), followed by medium-sized landowners (7,2%) and producers without rural registration (9,0%). Large producers, on the other hand, had the highest rate: 10,2%.

Among the agricultural regions, the South leads with the lowest percentage of default (5,1%). At the other extreme is the region called “North – Agro”, with 11,3%.

Although the share of financial institutions in the total negative debts is 6,7%, debts directly linked to the agricultural chain represented only 0,3%, and those related to related sectors, such as resale of inputs and transportation, totaled 0,1%.

Serasa Experian also announced the fourth edition of the Agro Bulletin, scheduled for release in the coming weeks. The publication will provide a detailed analysis of the economic and financial scenario of the sector in the last quarter of 2024, covering topics such as default, judicial recovery and consumption of rural credit in different segments and regions of the country.