28% of Brazil’s Farmers Face Financial Challenges
In a recent survey covering all 27 federal units, Serasa Experian found that 28% of Brazilian farmers had payment delays in July.
Age affects these delays. Farmers over 60 face fewer challenges. Those between 18 and 25 see higher rates.
Marcelo Pimenta, from Serasa Experian, commented. “The general population’s rate was 43.7% in July,” he said.
A March study showed only a 1% increase. Different regions had varied rates.
The South reported the lowest, at 15%. The Southeast followed at 24.6%. Central-West had 30.4%. The Northeast showed 33.8%. Lastly, the North recorded 40.1%.
Amapá had the highest farmer rate. Santa Catarina presented the best scenario.
Farmers should plan their finances. This includes understanding market changes and prices. Serasa Experian recommends rural insurance.
It can shield against events like droughts. With insurance, farmers can meet obligations.
Addressing overdue payments is essential. It helps farmers stay financially sound.
“Most Brazilian farmers manage well,” Pimenta added. “We offer tools for those needing help.”
Serasa Experian’s study was updated in July 2023. It examined 10 million individual profiles.
These individuals own rural properties. They are registered with rural registries.
The 2017 Agricultural Census provided data. It identified 5.1 million rural establishments. Brazil has 15.1 million farmers.
10.1 million are family farmers. The study represents some of these farmers.
The metrics capture all debts. Overdue payments classify a farmer as financially challenged. The study considers various farmer types.
Background
Brazil’s agricultural sector is vast. Farming has been central since colonial times. Coffee, soybeans, and sugarcane dominate exports.
Modern farming uses technology and research.
The economy heavily relies on this sector. It contributes significantly to Brazil’s GDP. Historically, fluctuations in prices affected farmers.
Global demands also influence their success.
In recent decades, agribusiness has grown. It brought both opportunities and challenges. Proper financial management became crucial.
Thus, understanding payment delays can guide future strategies.
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