Brazil Fertilizer Credit Requests Jump 190% to US$578M
BRAZIL · AGRICULTURE
Key Facts
- —The country Brazil, top soybean exporter, imports over 85% of its fertilizer.
- —What happened Fertilizer firms requested BRL 2.9 billion (US$578 million) in state credit.
- —The jump Requests rose 190% from about BRL 1 billion in the previous phase.
- —Approved so far BRL 1.7 billion (US$339 million) across 65 loans.
- —The US link Valor named US-based Mosaic and Brazil’s Fertipar as top requesters.
- —Still open Mosaic says it has not yet formally applied for this credit.
A relief plan first built for exporters hit by US tariffs is now keeping Brazil’s fertilizer suppliers afloat as war-driven costs climb.
Brazil fertilizer credit requests under a state relief plan have nearly tripled, the business daily Valor reported on Thursday, 8 October. Fertilizer companies asked for BRL 2.9 billion (about US$578 million) in cheaper loans between July and early October.
The figures came from the BNDES, Brazil’s state development bank, which runs the plan. The largest requests came from US-based Mosaic and Brazil’s Fertipar, Valor reported, a sign of strain behind the world’s biggest soybean exporter.
What the Development Bank Disclosed
The programme is called Brasil Soberano, or “Sovereign Brazil”. It was created in 2025 to support companies hit by tariffs imposed by US President Donald Trump.
The third phase also covers firms hurt by the war in the Persian Gulf region, according to the BNDES. Fertilizer producers were added as a strategic sector, with BRL 4 billion (US$797 million) earmarked.
In the second phase, to June, fertilizer firms had requested about BRL 1 billion (US$199 million), Valor reported. The new total marks a rise of 190%.
By 1 October, 62 companies in the sector had applied. The bank approved BRL 1.7 billion (US$339 million) in 65 operations and disbursed BRL 200 million (US$40 million).
Why Fertilizer Companies Need Cash
José Luis Gordon, the BNDES director for productive development, innovation and foreign trade, said most money goes to working capital. The aim is to avoid interruptions in production and supply, he told Valor.
Sinprifert, the fertilizer raw-material industry group, blames costs that rose after the US, Israel and Iran went to war in late February. Sulfur, used to make phosphate fertilizer, is the main driver.
Industry representatives said sulfur reached US$1,200 a tonne in mid-2026, up from US$435 in January. That is close to a threefold increase in six months.
Bernardo Silva, Sinprifert’s executive director, said urea and other inputs are also affected. Farmers face high interest rates and a rise in bankruptcy-protection filings, he added.
Brazil imports more than 85% of the fertilizer its farms use, Valor noted, which leaves it exposed to global price shocks.
Mosaic Says It Has Not Applied Yet
Mosaic, based in Tampa, Florida, and listed on the New York Stock Exchange, is one of Brazil’s largest fertilizer suppliers. It told Valor it considers the plan relevant and has consulted the bank about suitable credit lines.
“So far there has been no formal request for financing under this credit line,” the company said. That leaves its exact status unclear, since Valor listed it among the largest applicants.
In July, Mosaic announced temporary or partial stoppages at five plants in Brazil, Valor reported. It also cut output at two blending units because of the sulfur price.
What It Means for You
For US investors, Mosaic’s Brazil business is exposed to the same cost squeeze. Any state credit it takes would show how hard the sulfur shock is biting.
For US farmers, Brazil is the main rival in soybean exports. Costlier fertilizer could trim Brazilian yields or margins as the 2026/27 planting season gets under way.
The plan also shows how US tariffs and the Gulf war now shape Brazilian industrial policy. Brasília is using cheap state credit to cushion both shocks.
What Is Not Known
The BNDES has not published a list of all borrowers. Gordon said names will be released once loans are signed and first paid out.
It is unclear how the report of Mosaic as a top applicant fits the company’s denial of a formal request. The size of Mosaic’s and Fertipar’s requests was not disclosed, and Fertipar did not comment to Valor.
What Comes Next
About BRL 1.5 billion (US$299 million) approved but not yet released still has to be contracted. Gordon said the money should reach firms in the coming months.
Conversions use BRL 5.02 per US dollar, the market rate of 9 October 2026.
Frequently Asked Questions
What is Brasil Soberano?
It is a federal credit plan run by the BNDES development bank. It began in 2025 to help firms hit by US tariffs and now also covers Gulf war effects.
How much have fertilizer firms requested?
They requested BRL 2.9 billion, about US$578 million, between July and early October. That is 190% more than in the previous phase.
Is Mosaic borrowing from the Brazilian state?
Valor reported Mosaic among the largest applicants. Mosaic said it has consulted the bank but made no formal request so far.
Why are fertilizer costs rising?
Industry groups cite the conflict between the US, Israel and Iran. Sulfur, a key phosphate input, rose from US$435 to US$1,200 a tonne this year.
Does this affect US farmers?
Indirectly, yes. Brazil competes with the United States in soybean exports, and higher input costs can affect its crop and pricing.
Sources: BNDES news agency; Ministry of Development, Industry, Trade and Services (MDIC); Globo Rural / Valor; Diário do Comércio (all accessed 9 October 2026).
This article was drafted with automated assistance and reviewed before publication. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief