Brazil’s soybean planted area for the 2026/27 season is expected to reach 49.2 million hectares (121.6 million acres), little changed from the previous crop year, as farmers grapple with tighter profit margins, high debt levels and rising fertilizer costs, Agroconsult head Andre Pessoa said on Tuesday.
The country typically expands its soybean area by up to 1.5 million hectares each year, Pessoa said at a fertilizer industry event, but the upcoming season’s area is forecast to be roughly flat from the 49.1 million hectares of the previous year.
WHY IT MATTERS: Brazil is the world’s largest producer and exporter of soybeans.
A key factor behind the estimate is the tighter margins farmers are facing due to higher fertilizer costs and other expenses amid the Iran war, which has disrupted input flows.
A backdrop of high interest rates in Brazil also has weighed on producers, shooting up credit indebtedness levels.
The sector’s net debt-to-EBITDA (earnings before interest, taxes, depreciation and amortization) is seen rising from 2.1x this year to 2.8x next year, Pessoa said.
The consultancy expects Brazil’s fertilizer imports to decline to 38.4 million metric tons in 2026 from 43.3 million tons a year earlier.
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