New decree facilitates foreign financing in Brazilian agriculture

Brazil is one of the largest agricultural producers in the world, being the third-largest exporter behind only the U.S. and the European Union. Over the past three years, the sector has grown steadily, rising from 216 millions tons of produced grains in 2017 to 240 millions tons last year. But the results could have been even better, with the agriculture industry highly dependent on public funding and subsidies from the federal government. A new decree, however, increases the possibilities of private financing and is on the cusp of approval.

For the next decade, the outlook for Brazilian agriculture is solid. A study by the Ministry of Agriculture estimates that Brazil will increase its grain production by 300 million tons by 2030, an increase of 27 percent. However, a decrease in production...