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Shifting Dynamics in Soybean Farm Funding in Brazil

Author

Listed:
  • Monaco, Henrique
  • Colussi, Joana
  • Schnitkey, Gary
  • Paulson, Nick

Abstract

The financing structure of soybean production costs in Mato Grosso, Brazil’s largest agricultural state, has changed significantly over the past two decades. Funds for operational costs for soybean farmers in the region rely less on government-subsidized rural credit. Instead, farmers are increasingly funding their expenses from farm equity, multinational companies, and non-rural credit sources. This article examines the last 16 years of soybean operational costs funding sources and the recent increase in operational costs, analyzing the implications for the future of the agricultural credit landscape in Mato Grosso.

Suggested Citation

  • Monaco, Henrique & Colussi, Joana & Schnitkey, Gary & Paulson, Nick, 2025. "Shifting Dynamics in Soybean Farm Funding in Brazil," farmdoc daily, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics, vol. 14(186).
    • Handle: RePEc:ags:illufd:358420
    DOI: 10.22004/ag.econ.358420
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