The Agribusiness Newsletter brings information and news about the main regulations and legal texts relating to the regulation of agribusiness in Brazil. This initiative seeks to cover the agribusiness industry on its transactional, litigation, tax and regulatory levels, and is an invitation for all of those working in this market to both access important news and comments on vital topics from the sector.
This material is for informative purposes only, and should not be used for decision-making. Specific legal advice can be provided by our legal team.
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Daiver of consent of confronting parties in rectification of rural real estate
TAX REGULATION
Brazilian Federal Revenue Service clarifies the taxation of agribusiness operations in Uruguay under the Bilateral Convention
COSIT Consultation Solutions Nos. 83/2026 and 84/2026 were published on May 21, 2026, consolidating the Brazilian Federal Revenue Service’s (“RFB”) interpretation regarding the application of Individual Income Tax (“IRPF”) to income earned by individuals residing in Brazil in connection with activities and investments in Uruguay. With respect to rural operations, the RFB clarifies that income derived from real estate located in Uruguay may be taxed in both jurisdictions, subject to the mechanisms provided for in the Brazil-Uruguay Tax Treaty to eliminate or mitigate double taxation. Regarding dividends paid by Uruguayan companies, the RFB reaffirms Brazil’s right to tax such income, even if the investor resides abroad. The consultation solutions reinforce the principle of worldwide taxation applicable to Brazilian-resident individuals and highlight the need for proper tax planning in international structures frequently used in the agribusiness sector.
Brazil’s PGFN expands tax regularization measures targeting family farming
In a press conference held on May 12, 2026, the Office of the Attorney General of the National Treasury (“PGFN”) announced a new phase of the Desenrola Rural program, with special conditions for family farmers and small producers with outstanding federal tax liabilities. These measures include discounts of up to 100% on interest, penalties, and legal charges, as well as installment plans of up to 145 months. The initiative is also linked to the expansion of microcredit under the National Program for the Strengthening of Family Farming (“PRONAF”), including an increase in the limit of PRONAF-B line and specific lines for rural women, with a focus on productive inclusion, the strengthening of family farming, and the expansion of food production.
Commission approves unified risk platform for rural credit
The House of Representatives’ Committee on Agriculture, Livestock, Supply, and Rural Development approved, on May 6, 2026, Bill No. 3,123 of 2025, which proposes the creation of a unified system for risk analysis in rural credit (the National Rural Credit and Risk Management System), with the aim of modernizing and streamlining agribusiness financing in Brazil. The initiative provides for the centralization of information – currently dispersed across various public databases – into a single platform aimed at assessing the risk profile of rural producers in transactions such as financing, Rural Product Note (“CPR”) issuance, and agricultural insurance.
The proposal seeks to address the current fragmentation of data, which is considered a significant obstacle for financial institutions and insurers. By consolidating this information, the system is expected to provide greater transparency, standardization, and efficiency in risk assessment, as well as enable market players to make more informed decisions.
From a regulatory and operational standpoint, access to information will be restricted to financial institutions operating in the sector, such as banks and insurers, in compliance with the provisions of Law No. 13,709, of August 14, 2018, as amended (General Data Protection Law). The bill also ensures that rural producers may opt not to share their data, thereby retaining control over their information.
The initiative represents a strategic measure to expand access to rural credit, mitigate risks, and foster agricultural activity by enabling a more comprehensive and integrated view of borrowers’ profiles. Following committee approval, the bill will proceed for review in other legislative stages before its potential enactment into law.
For more information: Commission approves unified risk platform for rural credit.
Corporate rural credit exceeds BRL 391 billion in the 2025/2026 Crop Plan; CPRs consolidate their position as primary funding instrument in agribusiness
Rural credit for corporate agriculture totaled BRL 391.2 billion from July 2025 to April 2026, under the 2025/2026 Crop Plan, according to a newsletter released by the Ministry of Agriculture and Livestock (“MAPA”).
In this context, there has been a significant shift in the sources of rural credit financing, with particular emphasis on CPRs, which have established themselves as the primary funding instrument in agribusiness. CPR issuances reached BRL 167 billion in the period, representing 43% of the total credit granted, compared to 37% in the previous harvest year – an increase of 10% –, which demonstrates the migration of producers and trading companies toward market-based instruments rather than traditional credit lines.
In addition, the National Support Program for Medium-Sized Rural Producers performed positively, with growth of 3% and a volume of BRL 52.1 billion, signaling the resilience of this segment even in a more restrictive credit environment. These data show a reconfiguration of Brazilian agribusiness financing, with a greater role for market-based instruments and a relative restriction of traditional directed credit.
Another positive highlight during the period was the increase in credit for industrialization, which reached BRL 28.4 billion – an increase of BRL 11.3 billion compared to the previous harvest, which had already registered a 66% increase. This trend underscores the agro-industrial sector’s strategy of modernization and expansion.
For more information: Corporate rural credit reaches BRL 391.2 billion in the 2025/2026 Crop Plan and CPRs consolidate themselves as the main instrument for raising agribusiness funds.
ENVIRONMENTAL REGULATION
Environmental Conciliation Agreements
SÃO PAULO
PGE/SP regulates execution of environmental conciliation agreements under the SP +Verde Agreement Program
The Office of the Attorney General of the State of São Paulo (“PGE/SP”) published PGE Resolution No. 29/2026, which governs the execution of environmental settlement agreements under the SP +Verde Agreement Program. The program aims to promote the consensual resolution of environmental infractions through the execution of extrajudicial and judicial agreements, to be ratified in court, combining effective environmental remediation with the regularization of the defendant’s situation.
The agreements will cover environmental infraction notices (“AIA”) not registered as overdue tax liabilities, without a signed environmental recovery adjustment agreement (“TCRA”), and without full payment of the fine, as indicated by the program, which requires the designation by the State Secretariat for the Environment, Infrastructure, and Logistics (“SEMIL”). In addition, the agreements may provide for a discount of up to 40% through a TCRA, payment in up to 36 installments adjusted by the Broad National Consumer Price Index (“IPCA”), conversion of the fine into environmental remediation services, waiver of appeals, and judicial approval.
Effectiveness will depend on the approval by the State Attorney General for fines exceeding 30,000 São Paulo State fiscal units (“UFESPs”), or by the Deputy Attorney General for General Litigation for amounts up to this threshold, with the possibility of delegation for amounts below 20,000 UFESPs.
Planted Forest Management
MINAS GERAIS
State of Minas Gerais regulates registration and management of planted forests and charcoal production
The State Forestry Institute (“IEF”) published Ordinance No. 30/2026 on May 15, 2026, establishing guidelines for the registration, harvesting, and reporting of planted forests, as well as for charcoal production using native and exotic species.
The regulation stipulates that forest planting does not require prior authorization, but it does require mandatory registration in the state system within one year of implementation as a condition for controlling the origin of the timber.
The harvesting of planted forests with exotic species for in natura use requires prior registration, notification of harvesting, and payment of a forestry fee, while charcoal production requires the prior submission of a Declaration of Harvesting of Planted Forests.
The ordinance also prohibits registrations and declarations in areas that are irregular, embargoed, or unlicensed, and maintains the entrepreneur’s subjection to inspection and sanctions in the event of inconsistent information or omissions.
Biofuel production
FEDERAL
Brazil’s MME and MMA establish minimum percentage of waste use in biofuel production
The Ministries of Mines and Energy (“MME”) and Environment and Climate Change (“MMA”) published Interministerial Ordinance No. 3/2026 on May 13, 2026, setting a minimum proportion for the use of residual oils and fats (“OGR”) in the production of biodiesel, sustainable aviation fuel (SAF), and green diesel. The regulation establishes a minimum percentage of 1% of OGR out of the total renewable feedstocks used, with voluntary application in 2026 and 2027, and mandatory application as of January 1, 2028.
The National Agency for Petroleum, Natural Gas and Biofuels (“ANP”) will be responsible for monitoring compliance. It will also regulate procedures for monitoring, verification, and inspection, and may establish flexibility mechanisms in the event of insufficient supply.
Waiver of Permit for Financing and Environmental Licensing
RIO GRANDE DO SUL
SEMA waives water use permits for irrigation and animal watering in the 2026/2027 crop year
The Rio Grande do Sul State Secretariat for the Environment and Infrastructure (“SEMA”) published SEMA Normative Instruction No. 4/2026, waiving, exclusively for the purposes of financing, subsidies, and environmental licensing, the requirement to obtain water use permits for irrigation and animal watering in the 2026/2027 crop year.
However, users must be registered in the Water Use Registry of the Rio Grande do Sul Water Granting System (“SIOUT/RS”). This registration constitutes the first step in the process of obtaining a water use permit or a waiver, which is issued by the Department of Water Resources and Sanitation (“DRHS”).
Administrative proceedings concerning water use for irrigation and animal watering registered in SIOUT/RS must be classified under the status “Process awaiting initiation of technical analysis,” “Process under technical analysis,” or “Process awaiting correction of inconsistent data or submission of documents by water user or operator” in order for the DRHS to recognize the provisional compliance of such uses, exclusively for the purposes of financing, subsidies, and environmental licensing.
The following interventions are not included in this exemption:
- Water withdrawals and diversions located in the Arroio Sanchuri River Basin, Lagoa Mangueira, Arroio Velhaco River Basin, Lagoa Formosa, Lagoa do Bacupari, and Lagoa da Fortaleza;
- Interventions involving the use of surface water resources in the Gravataí River Basin, Rio dos Sinos River Basin, Santa Maria River Basin, and Piratinim River Basin;
- Reservoirs with a stored water volume exceeding 5,000,000 m³;
- Dams with a stored water volume exceeding 3,000,000 m³;
- Well drilling.
REGULATION – MINISTRY OF AGRICULTURE AND LIVESTOCK (MAPA)
Chocolate Law establishes product composition and labeling rules, effective as of May 2027
Law No. 15,404/2026 – which provides for the definitions and characteristics of cocoa-derived products, the minimum percentage of cocoa in chocolate, and the disclosure of the total percentage of cocoa on the labels of these products – was published on May 11, 2026. The law applies to both domestic and imported products marketed in Brazil.
The law will enter into force on May 7, 2027, and applies to the various stakeholders involved in the production and commercialization chain of these products in the domestic market.
According to the law, products containing less than 35% cocoa can no longer be labeled as “chocolate”, and another designation must be used according to their respective category.
For more information: Chocolate Law: new law establishes rules for product composition and labeling, effective in May 2027
Voluntary participation in the certification system for agricultural product warehouses proceeds to presidential sanction
The Senate plenary approved Bill No. 4,676/2019 on May 12, 2026, amending Law No. 9,973/2000. The bill establishes that participation in the public certification system for agricultural warehouses is voluntary. The bill has been forwarded for presidential sanction, the deadline for which expired on June 5, 2026.
The proposed voluntary participation in agricultural warehouse certification reflects a shift in the sector’s regulatory approach, enabling self-regulatory mechanisms. The proposal allows storage facilities to opt for private certification companies to attest to their compliance with the technical, operational, and safety requirements applicable to the storage and preservation of agricultural products.
SISPA: MAPA launches unified system for pesticide registration
The Ministry of Agriculture, Livestock and Food Supply (“MAPA”) launched the Unified Electronic Information, Petition, and Evaluation System (“SISPA”) on May 26, 2026, as a step toward modernizing the registration process for pesticides and related products in Brazil.
The initiative aims to integrate the stages of submission, analysis, and follow-up of applications into a single digital platform, consolidating information that was previously fragmented among the various agencies involved in the process, such as MAPA, the National Health Surveillance Agency (“ANVISA”), and the Brazilian Institute of the Environment and Renewable Natural Resources (“IBAMA”).
The initiative seeks to increase administrative efficiency and provide greater transparency and traceability to regulatory processes, meeting a long-standing demand from the sector.
REAL ESTATE REGULATION
CCIR-2026 issuance is authorized
The Rural Real Estate Registration Certificate (“CCIR”) for the 2026 fiscal year was made available on May 19, 2026, through the National Institute for Colonization and Agrarian Reform (“INCRA”) portal.
The CCIR is the document that certifies the registration compliance of rural real estate, containing information on ownership, area, location, use, and land classification. Such information is declaratory in nature and serves registration purposes only, and does not constitute proof of ownership or possession.
Under Brazilian law, there are no specific penalties for rural real estate not registered with INCRA. However, the absence of a valid CCIR prevents the performance of certain acts, such as parceling, rural lease agreements, mortgage, purchase and sale (or promise to sell), approval of parceling (judicial or extrajudicial), and access to rural credit. In this context, the issuance of an updated CCIR is an essential condition for these acts.
Therefore, for the annotation or registration of any of the above acts with respect to the rural real estate’s title, the competent real estate registry office will require the submission of the updated CCIR, considering that the CCIR for the 2026 fiscal year will replace that of 2025.
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