Agricultural Law 2026

BRAZIL Law and Practice Contributed by: Domicio dos Santos Neto, Frederico Favacho, Henrique Erbolato and Fernando Ferreira, Santos Neto Advogados

5. Financial Instruments and Financing Structures 5.1 Agriculture-Sector Credit Instruments CPR Brazil has a diversified system of instruments for financing agricultural activities and agribusiness sup- ply chains. The CPR remains a central instrument for private financing, and may provide for either physical or financial settlement. CPRs may be issued with or without collateral, and are used in transactions involv- ing producers, purchasers, financial institutions and other participants in the agricultural supply chain. Other Financing Instruments In addition to CPRs, rural and agribusiness financing may involve bank credit, trade financing, agribusiness securities and capital markets structures. The legal framework also permits the use of different forms of collateral and guarantees, allowing financing struc- tures to be adapted to the nature of the underlying agricultural activity and the profile of the debtor. The choice of financing instrument depends on the stage of the agricultural value chain, the nature of the underlying receivable or obligation, the profile of the financing party and the collateral available 5.2 Export Financing Structures Export-oriented financing is relevant to agricultural businesses, particularly for co-operatives, trading companies and other businesses involved in the inter- national commercialisation of agricultural commodi- ties. Pre-export financing and Advance on Exchange Contracts ( Adiantamento sobre Contrato de Câmbio – ACC) may be used to provide funding against expect- ed export proceeds or foreign exchange transactions. These structures may be combined with contrac- tual rights, receivables and other forms of collateral, depending on the transaction. Their legal and regula- tory treatment depends on the nature of the financing, the parties involved, the underlying export transac- tions and the applicable foreign exchange and finan- cial regulations.

In practice, export financing may therefore form part of broader working capital or structured-finance arrangements for agricultural businesses. 5.3 Capital Market Instruments Agribusiness Securities Capital markets instruments play a key role in financ- ing the Brazilian agricultural sector. CRAs, CDCAs and debentures are among the instruments used in agribusiness-related financing and may be structured with diverse types of underlying credit rights and con- tractual arrangements. Eligibility of Underlying Assets The eligibility of the underlying assets is a central legal consideration in these transactions. CMN Resolution No 5,118/2024 and subsequent amendments have significantly developed the regulatory framework gov- erning the collateral of CRAs, CRIs and CDCAs. Reso- lution CMN No 5,212/2025 in particular has further amended the rules applicable to the underlying assets of these instruments, including restrictions relating to debt instruments involving legal entities whose prin- cipal business activity is not in the relevant sector. As a result, legal analysis of agribusiness capital mar- kets transactions may require detailed review of the nature and origin of the underlying receivables, the activities of the relevant debtors and guarantors, the contractual chain and compliance with the applicable eligibility requirements. 5.4 Investment Funds and Securitisation FIDCs Investment funds and securitisation structures are important sources of private capital for the agri- cultural sector. FIDCs may be used to acquire and finance receivables, while FIAGROs provide a regu- lated investment fund structure specifically directed to assets and activities connected with agribusiness production chains. FIAGROs The regulatory framework for FIAGROs has evolved significantly since the previous edition of this Guide. Resolution CVM No 214/2024 introduced specific rules for FIAGROs through Annex VI to Resolution CVM No 175, replacing the previous experimental

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