Contracts fell more in the Central-West, which recorded the highest volume of rural credit; On the other hand, private financing for agriculture recorded an increase
The contracting of rural credit in the second half of 2024 fell 22.2% compared to the same period of the previous year. According to information from the Central Bank’s rural credit data matrix, the total volume contracted in the period fell from R$261 billion in 2023 to R$203 billion.
In regional analyses, the Central-West has the largest volume of rural credit, however, it was one of the regions with the greatest decline (see the map below). In 2023, R$68 billion in resources were contracted, while in 2024 the total fell to R$45.1 billion, a reduction of 33.7%. The number of contracts also decreased from 90,317 to 72,042, which represents a drop of 20.2%. The average value per contract, in turn, fell by 16.8% — from R$753 thousand to R$627 thousand.
The Southeast, in turn, saw a less pronounced reduction. The total contracted value fell from R$64.6 billion in the second half of 2023 to R$55.3 billion in the same period of 2024, registering a drop of 14.3%. Meanwhile, the number of contracts went from almost 223 thousand to 191 thousand, with a decrease of 14.29%. The average value per contract remained practically stable at R$289 thousand.
In the South, the drop was more pronounced in the average value of contracts, which fell by 11.3% — from R$197 thousand to R$174 thousand. In the last six months of last year, the total value contracted in the region was R$67.8 billion, compared to R$82.9 billion in 2023, a drop of 18.2%. The number of contracts also fell from 419 thousand to 389 thousand, a decrease of 7.2% when comparing the periods.
The Northeast, although it continues to register the largest number of contracts in the country, also suffered drops in the total value contracted. In 2023, the value was R$26.4 billion, and in 2024 it fell to R$20.9 billion. This represents a drop of 20.7%. The number of contracts fell 16.2%, from 511 thousand to 428 thousand, and the average value per contract fell 5.4% (from R$51.7 thousand to R$48.9 thousand).
The North region contracted R$14 billion in rural credit in 2024, compared to R$18.9 billion in the previous year, which represents a reduction of 25.5%. The number of contracts fell by 22.5%, from 55.4 thousand to 42.9 thousand, and the average value per contract decreased by 4.3% — from R$341 thousand to R$326 thousand.
While rural credit faces a decline, private financing for agriculture grows
While official rural credit registered a decline in the second half of 2024, with a decrease in the total volume of contracts and in the number of contracts, private financing for agribusiness showed growth. According to Broadcast Agro, securities aimed at financing agribusiness with private resources totaled R$1.2 trillion in stocks by the end of November. The increase was 31.5% in one year (from November 2023 to November 2024), according to the Private Finance Bulletin of the Agro-Industry Ministry.
In 2023, the stocks of Rural Product Notes (CPR), Agribusiness Credit Letters (LCA), Agribusiness Credit Rights Certificates (CDCA), Agribusiness Receivables Certificates (CRA) and Investment Funds in Agribusiness Production Chains (Fiagro) had totaled R$915.2 billion. In October 2024, the stock was R$1.1 trillion.
The greatest growth was reported in the stock of CPRs, from R$293.4 billion to R$465.2 billion – an increase of 59% in November of last year compared to the same month of the previous year. The average ticket price for the bonds fell 7% year-on-year, from R$1.5 million to R$1.39 million. When comparing the harvests, the growth in the stock of CPRs was even more significant, 77% from July to November of the 2024/25 season compared to the same period of the 2023/24 season, rising from R$106.8 billion to R$188.5 billion, demonstrating greater access by rural producers to private bonds to the detriment of official credit.
Another highlight of the month was the 23% increase in the stock of Agribusiness Credit Rights Certificates (CDCAs), to R$37.9 billion at the end of November. CRAs, in turn, rose 20%, to a stock of R$148 billion also in November.
Agribusiness Credit Notes (LCAs) showed a 14% increase in stocks in the annual comparison, to R$510.3 billion, showing a more restrained performance since the beginning of the year. The LCA is currently the main source of free resources directed to the granting of rural credit. Of the total, at least R$255.19 billion was reinvested in rural financing — 14% more than a year earlier.
The net equity of Fiagros was R$41.3 billion at the end of October, with an annual increase of 127%, in 119 managed funds, distributed in:
43.5% in real estate funds
41.2% in equity funds
15.3% in credit rights
The survey of agribusiness securities is carried out by the General Coordination of Market and Financing Instruments, of the Department of Financing Policy for the Agricultural Sector, of the Secretariat of Agricultural Policy of the Ministry of Agriculture. The balance considers data from B3, CERC and CRDC, Anbima, the Securities and Exchange Commission and the Central Bank of Brazil.