Brazil Senate Passes Profert Fertilizer Program Worth Up to US$1.97 Billion
Brazil · Politics
Key Facts
- —Senate vote PL 699/2023 approved on 11 August 2026.
- —Program size Up to R$10 billion (US$1.96 billion) over five years.
- —Annual cap Subsidies limited to R$2 billion (US$393 million) per year.
- —Fiscal impact Negotiated total of R$5 billion (US$982 million), sources say.
- —Domestic content Minimum 2% from 1 July 2027, rising to 10% by 2037.
- —Import reliance Brazil imports 85% of its fertilizers, per Folha.
- —Next step Bill sent to President Luiz Inácio Lula da Silva for sanction.
Lawmakers want to grow more fertilizer at home so Brazil depends less on imports.
Brazil’s Senate approved on 11 August 2026 a bill creating the Profert fertilizer program. A development initiative with a fiscal ceiling of up to R$10 billion (US$1.96 billion) over five years.
The substitute text of PL 699/2023, authored by Senator Laércio Oliveira (PP-SE), now proceeds to presidential sanction.
Senate Approves Profert Fertilizer Program
The Senate passed the Profert fertilizer program on 11 August 2026, according to Reuters and the Senate’s official news agency, Agência Senado. The bill, reported by Senator Tereza Cristina (PP-MS), creates the Programa de Desenvolvimento da Indústria de Fertilizantes.
Which had been under discussion since 2023. The program aims to reduce Brazil’s external dependence on imported fertilizers.
A vulnerability highlighted by global supply disruptions and price spikes in recent years. Lawmakers also cited food security and lower costs for the agricultural chain as key objectives.
According to Senate records, with Tereza Cristina emphasizing the need to strengthen domestic production capacity. The approval came after a concentrated effort session in the Senate, where the substitute text was read and debated.
The bill had previously been analyzed by the Senate’s Committee on Economic Affairs (CAE). Where it received a favorable report, according to Senate agency coverage.
Profert Fertilizer Program Fiscal Framework
Reuters reported that the approved text authorizes up to R$10 billion (US$1.96 billion) in fiscal credits over five years. A ceiling that had been included in earlier drafts.
Annual subsidies under this ceiling are capped at R$2 billion (US$393 million). Which aims to ensure fiscal discipline while providing a stable funding stream for the program.
Folha de S. Paulo reported a different fiscal outcome, noting that the original R$2 billion-per-year tax waiver was removed during negotiations.
The deal reduced the impact to R$5 billion (US$982 million) total, or R$1 billion (US$196 million) per year from 2027 to 2031. With the Ministry of Planning playing a critical role in shaping the final compromise.
Valor Econômico also covered the negotiations, reporting that the fiscal impact reduction was a condition for the government’s support. The final wording aimed to balance the program’s ambitions with budget constraints.
Reflecting broader concerns about public spending in the current fiscal framework.
Program Mechanics and Beneficiaries
The Profert program will issue fiscal credits against federal taxes, according to the bill’s text. Which was made available by the Senate’s online portal.
Beneficiaries include companies producing synthetic, mineral, and organic fertilizers, as well as bioinputs and remineralizers. Covering a broad range of inputs for the agricultural sector.
The executive branch will select which projects receive benefits through a competitive process. Reuters said, ensuring that public resources are directed to the most promising initiatives.
Firms under the Simples Nacional tax regime are excluded from the program. As they already benefit from a simplified taxation system, which would complicate the crediting mechanism.
The program also allows for the inclusion of projects that use national raw materials or advanced production techniques. With the goal of fostering innovation and local supply chains.
According to the bill, the Ministry of Agriculture and the Ministry of Development, Industry, Trade. And Services will jointly manage the program, with oversight from a steering committee.
Domestic Content Rules
The bill sets a mandatory domestic-content trajectory for the sector, which is designed to create a predictable regulatory environment for investors. According to the Senate, this starts at 2% from 1 July 2027 and reaches 10% by 1 January 2037.
Representing a gradual but firm commitment to local production. The government’s fertilizer council, Confert, can assess a phased path of up to 30% domestic content.
Allowing for adjustments based on industry capabilities and market conditions. This mechanism is designed to gradually build local production capacity while avoiding abrupt disruptions in the supply chain.
Which is particularly important for the agricultural calendar. The inclusion of domestic content rules was, according to Senate staff.
A response to concerns that fiscal incentives alone would not ensure a structural reduction in imports. By tying benefits to local sourcing, the program aims to create a multiplier effect.
Stimulating upstream industries such as mining and chemicals, as reported by Folha.
Context on Import Dependence
Brazil imports 85% of the fertilizers it consumes, according to Folha de S. Paulo, a figure that underscores the country’s vulnerability to external shocks.
This statistic was cited in the Senate debate by multiple senators as a driver for the legislation. With some noting that the Ukraine conflict had exposed the fragility of global supply chains.
The negotiation with the Ministry of Planning was critical to the bill’s passage. As the ministry initially expressed concerns about the fiscal impact.
Reports from Folha and Valor Econômico indicated that the final wording reflected a compromise to limit the fiscal impact. With the ministry obtaining a reduction in the annual cap and a shorter duration for the program.
The program also builds on earlier government initiatives, such as the National Fertilizer Plan (PNF). Which was launched in 2022, but has yet to see significant progress.
The Profert program is seen as a legislative complement to those efforts, providing concrete financial instruments to support the plan’s goals.
Next Steps After Senate Vote
The approved substitute text now goes to President Luiz Inácio Lula da Silva for sanction, as confirmed by the Senate’s press office. The Senate floor vote occurred on 11 August.
Following a concentrated effort session that also handled other items on the agenda, according to Agência Senado. The program’s implementation will depend on presidential approval and subsequent regulatory details, including the rules for the competitive selection process.
The law does not name specific beneficiary companies, according to the approved text, leaving room for broad participation by the private sector. If sanctioned, the Ministry of Agriculture will be responsible for issuing the regulations for Profert within a specified period.
As outlined in the bill. The government is expected to prioritize projects that can demonstrate rapid implementation and tangible reductions in import dependence.
According to analysts following the legislative process.
Frequently Asked Questions
What is the Profert fertilizer program?
Profert is a proposed federal program to support fertilizer production in Brazil. It offers fiscal credits to companies making synthetic, mineral, or organic fertilizers and related inputs, with the goal of reducing import dependence.
How much will the Profert program cost?
The original ceiling allows up to R$10 billion (US$1.96 billion) over five years. Negotiated reports indicate a reduced fiscal impact of R$5 billion (US$982 million) total.
Why is Brazil creating this program?
Brazil seeks to reduce its heavy reliance on imported fertilizers, which reportedly covers 85% of consumption. The program aims to strengthen food security and stabilize supply chains, protecting farmers from global price volatility.
What happens next for the bill?
The bill has been sent to President Luiz Inácio Lula da Silva for sanction. He can approve it fully, veto parts, or veto the entire text.
Sources: Reuters, Agência Senado, Folha de S.Paulo, UOL/Agência Estado, O Povo, Congresso Nacional, Poder360
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