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.
AGRIBUSINESS IN THE MEDIA
- How climate change increases legal risk and puts pressure on Brazilian industry
- New IDB green fund with BTG will attract more resources to the Amazon, says Ilan Goldfajn
AGRIBUSINESS SECTOR REGULATION
Tax Regulation
Congress approves changes to the Tax Reform to benefit agricultural producers
On August 12, 2026, the House of Representatives and the Federal Senate approved Complementary Bill No. 114/2026, which amends Complementary Law No. 214/2025, to expand the tax benefits applicable to the agricultural sector. The text reduces the minimum percentage of export revenues required for classification as a predominantly exporting company from 50% to 30%, allowing for the suspension of the Tax on Goods and Services (“IBS”) and the Contribution on Goods and Services (“CBS”). The Federal Government may also grant up to BRL 5 billion in tax credits between 2027 and 2031 for the production of fertilizers, raw materials, remineralizers, and bioinputs.
The benefit will be limited to BRL 1 billion per year and to up to 20% of the expenditures incurred for the domestic production of fertilizers and raw materials. Additionally, goods intended for development projects in this industry will be exempt from the Freight Surcharge for the Renewal of the Merchant Marine, subject to a maximum tax waiver of BRL 200 million per year.
See more details: Following an agreement, the reduction of taxes on fuels is set to be enacted
Court suspends contribution on grains destined for export in Maranhão
The 5th Public Finance Court of São Luís ruled in favor of an agribusiness company, suspending the collection of the Special Grain Contribution (“CEG”) on operations intended for export. The contribution, established by Maranhão State Law No. 12,428/2024, imposes a 1% rate on the value per ton of certain grains produced, stored, or transported within the state.
Upon analyzing the case, the Court held that the CEG requirement on export operations is incompatible with the constitutional immunity applicable to exports and with the purpose of exempting these operations. The decision also highlighted that Article 136 of the Transitional Constitutional Provisions Act (“ADCT”), introduced by Constitutional Amendment No. 132/2023 in the context of the Tax Reform, grants states exceptional and conditional powers, not authorizing the imposition of contributions that burden exports.
In addition to suspending the collection, the ruling ordered the tax authorities to refrain from applying penalties arising from non-payment of the contribution, such as the retention of goods in transit or the suspension of registration. Although still subject to review by higher courts, the decision represents a relevant precedent for the agribusiness sector and reinforces the debate on the limits of state taxation during the transition resulting from the Tax Reform.
See more details: Court rules out collection of the grain contribution on exports in Maranhão
Federal Government regulates subsidy for sugarcane producers in the Northeast
On August 11, 2026, Decree No. 13,092/2026 was published, regulating the extraordinary grant of an economic subsidy of BRL 12.00 per ton of sugarcane sold in the 2025/2026 harvest. This subsidy is intended for independent producers in the Northeast who have suffered losses due to the additional taxation imposed by the United States on Brazilian exports or due to extreme weather events. The measure aims to preserve income, production, and jobs in the sugar-energy sector, with funds limited to BRL 270 million. Independent agricultural producers, individuals, or legal entities – as well as cooperatives and associations in relation to the production of their active members or associates – may receive the benefit. Producers who hold a direct or indirect equity interest in the mills, distilleries, or cooperatives that are the recipients of the sugarcane supplied are excluded. The subsidy covers production delivered between August 1, 2025, and July 31, 2026.
Interested parties must electronically submit to the National Supply Company (“CONAB”), by October 30, 2026, the electronic tax documents proving the sale, as well as the documentation relating to economic losses, the criteria for which are yet to be defined by the Ministry of Agriculture and Livestock (“MAPA”). Compliance with the National Treasury, the Brazilian Social Security Institute (“INSS”), the Guarantee Fund for Length of Service (“FGTS”), and other public registries will also be required. CONAB will be responsible for reviewing the documentation and making the payment, which will be made via Brazil’s instant payment system (“Pix”) linked to the beneficiary’s taxpayer or corporate taxpayer registration number (“CPF” or “CNPJ”, respectively) or by deposit into a current account held by the beneficiary. Any inconsistencies may be corrected within 10 calendar days of notification, with only one resubmission of the documents being allowed. Any irregular receipt will result in the full refund of the amounts, adjusted by Brazil’s benchmark interest rate (“SELIC”).
See more details: Government to pay subsidy via Pix to sugarcane producers in the Northeast
Agribusiness-related indices lead B3 gains in the first half of 2026
B3 closed the first half of 2026 with agribusiness-related indices, state-owned enterprises, and the market’s most defensive segments standing out. The survey points to a significant change in the profile of the best-performing indices compared to the same period in 2025, reinforcing the role of these indicators as a reference for Exchange Traded Funds (“ETFs”) and other investment strategies.
The biggest gain among all B3 indices was precisely in the agricultural sector: the Futuro Boi Gordo (Live Cattle Futures) Index appreciated by 16.38% between January and June, leading the ranking. The State-Owned Enterprises Index (15.96%) and the Public Utilities Index (10.89%) follow, comprising companies in the electricity, sanitation, and gas sectors.
As B3 indices serve as the basis for ETFs, the growing interest in agribusiness-related indicators could facilitate the launch of new products, broadening access to strategies previously restricted to institutional investors and reinforcing the role of the capital market as a source of financing for the sector.
In this context, the first-half results show a growing preference for segments traditionally associated with cash generation and operational stability, in contrast to the predominance of other sectors observed in the same period of the previous year.
See more details: Agribusiness-linked indices lead B3 gains in the first half of 2026
ANBIMA launches guide for non-resident investors in Brazil
The Brazilian Financial and Capital Markets Association (“ANBIMA”) has published the “Guide for Non-Resident Investors in the Brazilian Financial and Capital Markets,” a publication intended to help foreign investors understand the regulatory, operational, and tax requirements applicable to accessing the Brazilian market. The material provides an overview of the structure of the country’s financial and capital markets, the main regulatory bodies, and the rules for foreign investments in securities, financial assets, and government bonds.
The guide was prepared as part of the modernization of the Brazilian regulatory framework for foreign investment, reflecting recent changes aimed at simplifying procedures, increasing legal certainty, and aligning national regulations with international standards. The publication also provides practical guidance on registration, hiring local service providers, investor identification procedures, and market access modalities. It also details the main instruments available for investment in Brazil.
The publication was designed as a practical reference, not as an exhaustive legal or tax manual. It is recommended that professional guidance be sought when evaluating specific investment decisions and when mapping the requirements and risks involved. The guide aims to enhance international investors’ understanding of and interest in the Brazilian market – a factor that can contribute to increased liquidity and availability of capital for various sectors of the economy.
See more details: Anbima launches guide for investors not resident in Brazil
Goiás: SEAPA establishes the ABC+GO targets for the period from 2020 to 2030
On July 28, 2026, the State Secretariat of Agriculture, Livestock, and Food Supply (“SEAPA”) published SEAPA Ordinance No. 365/2026, which establishes targets for the period from 2020 to 2030 under the Sectoral Plan for Adaptation to Climate Change and Low Carbon Emissions in Agriculture and Livestock in the State of Goiás (“ABC+GO”).
According to the ordinance, by 2030, the ABC+GO Plan includes, among others, the following expansion commitments:
- 1,900,000 hectares of land where practices for the recovery of degraded pastures are adopted;
- 1,000 hectares of area with the adoption of planted forests;
- 4,400,000 hectares of area with the adoption of bioinputs; and
- 810,000 cattle undergoing Intensive Finishing, comprising confinement, semi-confinement, and pasture supplementation.
By implementing these goals, the ABC+GO Plan seeks to reduce vulnerability and increase the resilience of agricultural production systems to climate change, as well as to promote the conservation of natural resources, the enhancement of biodiversity, and the climate stability of production systems.
Ceará: COEMA amends the environmental licensing instrument applicable to activities classified as having a high pollution potential
On July 20, 2026, the State Environmental Council (“COEMA”) of Ceará published COEMA Resolution No. 3/2026, which amends the environmental licensing instrument applicable to activities classified as having high pollution potential by COEMA Resolution No. 2/2019.
The new resolution stipulates that activities classified as such, previously subject to obtaining the Environmental License by Adhesion and Commitment (“LAC”), will now be subject to the procedure for obtaining the Single Environmental License (“LAU”).
Environmental licensing processes currently underway to obtain the LAC for activities classified as having high pollution potential must be adapted to the procedure applicable to the LAU, without prejudice to actions validly taken.
COEMA Resolution No. 2/2019 classifies activities such as rainfed agricultural projects and irrigation projects that use pesticides as having a high potential for pollution.
Rio Grande do Norte: Government regulates the Environmental Regularization Program
On July 21, 2026, the Government of the State of Rio Grande do Norte published State Decree No. 35,737 to regulate the Environmental Regularization Program (“PRA”), which aims to encourage measures to be undertaken by rural landowners and occupiers with the goal of making the environmental regularization of rural properties feasible and compliant.
The PRA aims to: (i) recover, restore, or regenerate degraded or altered ecosystems in Permanent Preservation Areas; (ii) adapt agricultural use in Restricted Use Areas (“AUR”); and (iii) provide compensation for the Legal Reserve (“RL”).
Among the provisions introduced, the decree stipulates that relocations or changes in the location of RL areas must comply with the criteria established in the Forest Code and demonstrate measurable environmental gain, characterized, cumulatively or alternatively, by:
- Increase in the extent or connectivity with remnants of native vegetation;
- Location in priority areas for biodiversity conservation;
- Improvement of the ecological conditions of the area, including greater integrity, diversity, or conservation status of native vegetation; and/or
- Protection of water resources or environmentally sensitive areas.
Registration of the property in the Rural Environmental Registry (“CAR”) is a prerequisite for joining the PRA. After joining, the owner or possessor must submit a Simplified Environmental Regularization Proposal (“PSRA”), and the environmental agency may require the preparation of a Degraded or Altered Area Recovery Project (“PRADA”).
The decree stipulates that the PRADA will be reviewed by the state environmental agency. If any inconsistencies or non-conformities are identified, the owner or possessor will be notified to make the necessary adjustments.
Finally, to enable the environmental regularization of the rural property, an Environmental Commitment Agreement must be entered into between the owner or possessor and the environmental agency – following the review and approval of the PSRA and the PRADA or, as applicable, the RL compensation proposal.
Mato Grosso: SEMA and the Military Fire Department stipulate procedures to create firebreaks on rural properties located in Restricted Use Areas of the Mato Grosso Pantanal
On August 13, 2026, the State Secretariat for the Environment (“SEMA”) and the Military Fire Department published Normative Instruction SEMA/MT CBM/MT No. 3/2026 (“IN No. 3/2026”), which governs the procedures for creating firebreaks on rural properties located in the AUR of the Mato Grosso Pantanal biome during the environmental emergency period provided for in State Decree No. 2.015/2026, which runs from April to December 2026.
According to IN No. 3/2026, the owner or holder of rural property located within the aforementioned AURs, including within state Conservation Units (“UCs”) for sustainable use, may establish and maintain preventive firebreaks, regardless of authorization from the environmental agency.
The new IN No. 3/2026 defines a firebreak as a “linear discontinuity” created preventively in the vegetation, anchored by natural or artificial barriers, established manually or mechanically, with the purpose of containing the spread of fires.
The preventive firebreak must have a minimum width of 6 meters and a maximum width of 40 meters. The opening of a preventive firebreak that entails the suppression of native vegetation is prohibited, except in native pasture areas.
Finally, IN No. 3/2026 stipulates that the owner or possessor of the rural property must file a Declaration of Firebreak Activity in the Pantanal, reporting the creation of firebreaks – which will be shared with the Coordination Office for Conservation Units when the property is located within a state UC, and with the Inspection Planning Management Office in all other cases.
MAPA Regulations – Ministry of Agriculture and Livestock
MAPA publishes and submits for public consultation an ordinance on procedures for controlling the import and export of agricultural inputs
On August 18, 2026, MAPA published SDA/MAPA Ordinance No. 1,673/2026, submitting for public consultation, for a period of 45 days, the draft ordinance that establishes the control procedures applicable to the import and export of agricultural inputs.
According to the proposal submitted for consultation, the regulation will cover various categories of agricultural inputs, including pesticides and related products, fertilizers, soil conditioners, inoculants, seeds, seedlings, and plant propagation materials.
The regulation seeks to govern the control mechanisms applied to import and export operations, providing for the use of electronic tools integrated with foreign trade and procedures related to the authorization, supervision, inspection, and verification of product compliance.
The public consultation will remain open until October 23, 2026.
Competition Regulation
Supreme Federal Court recognizes the legitimacy of the Soy Moratorium and orders the dismissal of judicial and administrative actions concerning the validity of the agreement
On August 12, 2026, the Federal Supreme Court’s Full Court concluded the joint trial of Direct Actions of Unconstitutionality (“ADIs”) No. 7,774 and No. 7,775, which challenge the constitutionality of state laws related to the withdrawal of tax benefits and the granting of land to signatories of the Soy Moratorium.
Signed in 2006, the Soy Moratorium brings together the government, major trading companies, associations, and NGOs around a commitment not to purchase soy grown in deforested areas of the Amazon. Since 2024, a Class Action was pending before the Court of Justice of the State of Mato Grosso (“TJMT”), an Early Production of Evidence before the Court of Justice of São Paulo, an Administrative Proceeding before the Administrative Council for Economic Defense (“CADE”), and other related actions that challenged the legitimacy of the Soy Moratorium. In November 2025, Justice Flávio Dino, rapporteur of Direct Action of Unconstitutionality (“ADI”) No. 7,774, ordered the suspension of all judicial and administrative actions challenging the legitimacy of the agreement until the matter was decided by the STF.
By a majority, the Full Court converted the referendum into a ruling on the merits and adopted the opinion of Justice Flávio Dino, rapporteur of ADI No. 7,774, who was fully joined by Justices Alexandre de Moraes, Cristiano Zanin, Cármen Lúcia, and Gilmar Mendes, and partially joined by Justice Edson Fachin. The prevailing view concluded that the ADIs were partially upheld, recognizing the constitutionality of withdrawing tax benefits, but establishing the need to observe the principles of annual and 90-day prior notice, as applicable, when withdrawing tax benefits provided for in state laws.
The Supreme Federal Court recognized that the Soy Moratorium constitutes a legitimate private and voluntary agreement, entered into between economic agents in the exercise of their freedom of initiative, and that it does not constitute a cartel or an unlawful agreement. According to the prevailing opinion, the initiative produced economic and environmental benefits, and its analysis was necessary for the adjudication of the ADIs, since the challenged state laws directly affect the signatories of the agreement.
In addition, the Full Court ordered the dismissal of all judicial and administrative actions that, directly or indirectly, challenge the legitimacy of the Soy Moratorium, including the proceedings currently pending before CADE. The measure was based on the need to provide legal certainty to the sector and to resolve the disputes related to the validity of the agreement.
Justices Dias Toffoli, Luiz Fux, and André Mendonça partially disagreed. In general, they considered that the STF should limit its ruling to the constitutionality of the state laws, without deciding, within the scope of the ADIs, on the legality or the possible competitive effects of the Soy Moratorium. Justice Dias Toffoli considered that any competition-related aspects of the agreement should be reviewed by the competent authorities and voted in favor of partially upholding the actions, providing an interpretation consistent with the Constitution and state laws, that the withdrawal of tax benefits must comply with the principles of annual and 90-day advance notice.
Justice Edson Fachin, for his part, voted to uphold the ADIs and declare the state laws unconstitutional, believing that tax incentives can promote environmentally sustainable conduct and that the challenged rules compromise constitutional principles related to environmental protection, equality, and a competitive balance. Regarding the legitimacy of the Soy Moratorium and the dismissal of the ongoing lawsuits, the justice concurred with the reporting justice.
The decision concludes, on the merits, the constitutional controversy examined in the ADIs, recognizing the legitimacy of the Soy Moratorium and ruling out the continuation of judicial and administrative litigation challenging its validity. The publication of the judgment is awaited. A motion for clarification may be filed against it to remedy any omission, obscurity, contradiction, or clerical error in the decision.
See more details: STF upholds the Soy Moratorium and dismisses lawsuits in the courts and at CADE
Related Partners
Related Areas
Share
