BRAZIL Trends and Developments Contributed by: Flávia Santanna Benites, Priscila Camargo, Jhonatan Poiana and Sandro Miguel Junior, Ernesto Borges Advogados
Ernesto Borges Advogados Rua 15 de Novembro, 2030 Campo Grande Mato Grosso do Sul (MS) Brazil Tel: +55 67 3389 0123 Email: contato@ernestoborges.com.br Web: www.ernestoborges.com.br
Overview of farming productivity and efficiency Agribusiness has been one of the cornerstones of the Brazilian economy for decades, accounting for a significant share of what the country produces, exports and employs. Recent innovations towards modernising the sector have ultimately raised Brazil’s agricultural productivity standards. In consolidated areas, historical averages ranging from 30 to 40 bags per hectare have been surpassed, now exceeding 70 bags per hectare in high-performance plots, although these outcomes change according to crop, soil, relief and the climatic conditions of each crop. The evolution of domestic production capacity can be tracked in Conab’s historical series on planted area, grain production and productivity. For the 2025/2026 harvest, Conab’s 11th survey estimated total produc- tion at 360.8 million tons, representing an increase of 2.4%, equivalent to 8.5 million tons compared to the previous period, especially in soybeans, corn and sorghum production. However, physical harvest records alone do not ensure the profitability of the rural business; productivity per hectare is only one factor in the economic equation. The actual financial result stems from the relationships between revenues and production costs, cost and the availability of capital, exchange rate volatility, interna- tional commodity prices, logistical bottlenecks, severe weather events and the regulatory environment. With- out structured planning, increases in harvested vol- ume may coincide with margin squeeze and liquidity constraints.
Brazilian Agribusiness: From Field Productivity to Tax Governance, Efficient Management and Sustainable Financing Introduction Agribusiness holds a strategic position in the Brazilian economy and in the global food supply. Over recent decades, the modernisation of farming has been driven by the intensive incorporation of technologies, cutting-edge mechanisation, genetic improvement, precision nutrition, and technical management of crops. Such innovations have ultimately raised Bra- zil’s agricultural productivity standards, and helped cement the country’s status as one of the major agri- food powers in the world. More than an economic activity, agribusiness has become a complex ecosystem that connects produc- ers, co-operatives, agro-industries, financial institu- tions, investors, logistics operators and consumer markets spread across the planet. In this increas- ingly sophisticated environment, competitiveness has ceased to depend exclusively on productive capacity and started to demand operational efficiency, profes- sional management, access to capital, legal certainty and corporate governance. It is precisely in this context that the issues of financ- ing the sector, governance and management, and tax reform are framed. The new regulatory reality imposes relevant challenges, but also creates opportunities for companies and producers that are prepared to trans- form information, compliance and governance into competitive edges.
27 AGRICULTURAL LAW 2026
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