Defaults Put Spotlight on Brazil Bank Behemoth’s Agro Dependence

Banco do Brasil SA’s dominance in agribusiness loans has often been touted as a key strength. The bank accounts for half of the financing that flows into the sector — an edge in a country that, by and large, feeds the world breakfast.

But interest rates at a two-decade high and successive harvest setbacks have left farmers in a tough spot. They filed for bankruptcy protection at the fastest pace on record in 2024, a downturn that reverberated across the industry that has yet to show signs of reversal.