Agribusiness faces a long list of challenges to address

In a special report published by Valor Econômico, specialists from FAS Advogados examine the challenges affecting Brazilian agribusiness, particularly the agricultural inputs segment, amid high costs, declining profitability, rising default rates and increasingly restricted access to credit.

In response, crop protection and fertiliser companies have increasingly turned to financial structures such as Receivables Investment Funds, known in Brazil as Fundos de Investimento em Direitos Creditórios or FIDCs, to diversify their funding sources and reduce the concentration of credit risk on their balance sheets. For companies, investors and financial institutions, this trend requires careful consideration of the quality of receivables, collateral, debtor concentration and the legal risks involved in these transactions.