BRAZIL Law and Practice Contributed by: Domicio dos Santos Neto, Frederico Favacho, Henrique Erbolato and Fernando Ferreira, Santos Neto Advogados
enforcement for delivery of the agricultural product is converted into enforcement for payment in money. 8.4 Disputes in Uncompleted Transactions Where a party has failed to fulfil a contractual obliga- tion, the available remedies will depend on the nature of the obligation, the contractual provisions and the circumstances of the default. Brazilian law recognises specific performance as a primary remedy where the contractual obligation can still be performed. Courts may order a party to do something, refrain from doing something or deliver a specific asset, and may adopt the necessary meas- ures to secure the practical effectiveness of the order. Conversion into damages may occur where specific performance is impossible or where the applicable legal requirements are satisfied. In commercial and financing transactions, the con- tractual allocation of risk is also relevant. Parties may provide for termination rights, conditions precedent, liquidated damages, indemnification, penalties and other remedies applicable to a failure to close or per- form. Where the transaction involves an arbitration agree- ment, the dispute will be referred to arbitration, sub- ject to the scope and validity of the arbitration clause. Where judicial proceedings are appropriate, interim or urgent relief may also be sought where necessary to preserve rights or prevent irreparable harm. In agribusiness transactions, the appropriate remedy may also depend on the underlying asset or instru- ment. For example, disputes concerning the delivery of agricultural products under a CPR may involve specific enforcement of the delivery obligation, while financial CPRs and other monetary obligations may be enforced through the applicable monetary remedies. 9. Recent Developments and Future Trends 9.1 Regulatory and Legislative Developments Brazil’s focus on fertiliser manufacturing incentives, agricultural input inspections and traceability rules,
alongside major discussions regarding credit reforms and international trade standards, are the most recent legal and regulatory developments: • approved by Congress in August 2026, the Profert programme creates production tax credits and financing via BNDES to lower foreign dependency on fertilisers; • Decree No 12,858/2026 updated plant nutrition and agricultural input regulations in February 2026 to align with the Self-Control Law framework; and • MAPA enacted ordinances in April 2026 establish- ing the Fish Invoice for traceability and updating phytosanitary export rules. In relation to upcoming reforms, two main discussions are on the table: • the Agricultural Parliamentary Front (FPA) in the Congress is actively debating a fresh overhaul of the • Lei do Agro to streamline private capital and lower funding costs for rural producers; and • Brazil, like other major agricultural nations, is chal- lenging new European Union residue limit propos- als at the World Trade Organization, arguing that the rules disregard science-based risk assess- ments. 9.2 Market Adaptation and Investor Sentiment The Brazilian market has responded quickly to chal- lenges and opportunities. Recently, traders estab- lished the Soy Moratorium in response to pressure from European entities and NGOs for the traceabil- ity of soy produced in the Amazon region, aiming to ensure the grain did not originate from newly defor- ested areas. The Brazilian judiciary has upheld the legality of private, voluntary zero-deforestation supply chain commitments, although friction with producers at the state level persists. 9.3 ESG and Sustainability ESG considerations are profoundly transforming Brazilian agribusiness, shifting from mere voluntary, reputation-focused initiatives into decisive factors for market access, operational efficiency and credit avail- ability.
24 AGRICULTURAL LAW 2026
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