BB Disburses R$85 Billion in Agribusiness Financing for 2025/26 Season: What You Need to Know

• How Much Has Banco do Brasil Disbursed So Far?
• What’s the Breakdown of the R$230 Billion Allocation?
• Why Are Farmers Hesitant to Borrow?
• How Is the 2025/26 Crop Season Progressing?
• What’s the Price and Profitability Outlook?
• FAQs: Key Questions Answered

Banco do Brasil (BBAS3) has already disbursed approximately R$85 billion in financing for the 2025/26 agribusiness season, marking a strategic shift in rural credit dynamics. While this figure represents a decline from the previous season's R$105 billion, the bank remains optimistic about balancing disbursements by the season's end in July 2026. With R$230 billion allocated for agribusiness financing—2% more than last season—the bank is navigating a complex landscape of high interest rates and cautious investment behavior. Here's a DEEP dive into the numbers, sector-specific allocations, and market implications.

How Much Has Banco do Brasil Disbursed So Far?

Between July and November 2025, Banco do Brasil released R$85 billion in agribusiness financing, covering rural credit operations, agricultural bonds like CPRs (Cédulas de Produto Rural), agroindustrial credit, and working capital for agribusiness value chains. This amount includes current debt renegotiation operations but falls short of the R$105 billion disbursed during the same period in the previous season. Gilson Bittencourt, the bank's Vice President of Agribusiness and Family Farming, attributes this slowdown to reduced demand for rural credit, particularly in the corporate agriculture sector.

What’s the Breakdown of the R$230 Billion Allocation?

Banco do Brasil plans to distribute R$230 billion across three key segments:

• Corporate Agriculture: R$106 billion for large producers, cooperatives, and agroindustries.
• Family Farming & Mid-Sized Producers: R$54 billion, with performance currently aligning with expectations.
• Agribusiness Value Chain: R$70 billion for ancillary agribusiness operations.

Despite the 2% overall increase in funding, Bittencourt notes a 35-40% drop in new investment appetite among corporate farmers, citing high interest rates and stabilized profitability as key deterrents.

Why Are Farmers Hesitant to Borrow?

"This is a moment for only those in strong financial positions to invest," Bittencourt explains. "With elevated interest rates, many producers are postponing investments, hoping for a Selic rate cut later this year." The cost of financing for corporate agriculture has also dipped below last season’s levels, reflecting weaker demand for free-market credit lines. Essentially, farmers are prioritizing cash Flow reorganization over expansion.

How Is the 2025/26 Crop Season Progressing?

Despite concerns about La Niña’s potential impact, Banco do Brasil reports a stable outlook for crop production. "Planting is on schedule, and most areas are already sown without significant reductions," says Bittencourt. Both IBGE and Conab (Brazil’s National Supply Company) project steady output, though the bank is monitoring whether reduced technological inputs might later affect yields.

What’s the Price and Profitability Outlook?

Agricultural commodity prices are returning to historical averages, squeezing margins for high-cost producers. "Some regions are becoming economically unviable due to production costs," Bittencourt notes. This trend could reshape planting decisions in future seasons if profitability continues to normalize.

FAQs: Key Questions Answered

How does this season’s disbursement compare to last year?

Banco do Brasil disbursed R$85 billion from July-November 2025, down from R$105 billion in the same period last season. The bank expects a more balanced distribution by the season’s end.

What sectors receive the most funding?

Corporate agriculture leads with R$106 billion, followed by family farming (R$54 billion) and agribusiness value chains (R$70 billion).

Why are corporate farmers borrowing less?

High interest rates and stabilized profitability have led to a 35-40% decline in new investment demand, with many producers deferring spending.

Is crop production on track despite financing dips?

Yes, planting progress and area coverage remain stable, though the bank is watching for potential yield impacts from reduced technology adoption.