Commodities Shuttle: With an improvement in income, delinquency falls in the rural sector, but the balance is still high

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Even in the current bonanza in the agricultural sector, there are those who cannot manage their property correctly, and enter the list of defaulters.

High commodity prices for several harvests and good profitability, mainly due to exports, favored by the high dollar, make many producers, however, catch up on their debts.

Currently, delinquency in rural credit operations is between 0.5% and 1%, which shows that producers, today with more liquidity, are managing their activity better. Ten years ago, this rate was 2%.

The balance of debts from the past, however, is very large. This volume of money is between R$300 billion and R$400 billion in agribusiness.

The estimates are from Christian Ramos, president of NPL Brasil, a manager of non-performing corporate credits. Independent, the manager has close to R$ 6 billion in its portfolio.

The purpose of the operations is to reinsert the producer or company into the market and re-qualify them to act within a more modern business platform, where they can have more accessible credit and even engage in ESG concepts (commitments to the medium environment, social and governance).

In default, the producer is limited in his actions. They often have large assets, but the amount of debt does not allow them to adequately carry out their activities.

Credit is limited and expensive. As a result, production, which is often inefficient, does not allow for the fulfillment of commitments.

The origin of these credits may have been loans by the financial system, “barter” (exchange of inputs for agricultural products) or other forms, says Ramos. Some of them are skeletons from decades ago, and come from institutions like Bamerindus, Banespa and others.

The manager, after evaluating the potential of these producers and their debts, brings a national or international investor to the business that buys these credits.

The objective is the requalification of this debtor, according to the president of the NPL. This credit is arbitraged, which, in most cases, is cheap, since financial institutions no longer expect to recover it.

The banks have improved a lot, but they are far from having the efficiency of those who specialize and have technology in this sector, says Ramos.

The exit of this producer from the banking system as a debtor allows access to cheaper credit or he receives financing from the fund that is investing.

When leaving these bonds of debt, the producer returns to production and will increase the capacity to settle their debts.

In some cases, however, these commitments, which come from decades ago, are priceless, according to the president of NPL Brasil.

High expenses The operating costs of coffee producers were R$ 12 thousand per hectare in the 2021/22 harvest. In the next, they will rise to R$ 20 thousand, according to the evaluation of technicians from Itaú BBA.

good recipes With a sack selling price of R$ 600, and a productivity of 25 sacks, the producers obtained a return of R$ 120 per sack in 2021/22.

Even better In the 2022/23 harvest, with a bag value of R$1,400 for delivery in 2022, and productivity of 30 bags per hectare, they will get R$700 per bag, according to analysts.

Production Itaú BBA estimates a production of 56 million bags of coffee in 2021/22. The next one will be between 60 million and 64 million.

Price The bag of coffee was traded, on average, at R$ 1,282 this Thursday (4) for the product placed in the city of São Paulo, with a rise of 2.1% in the month, according to Cepea (Center for Advanced Studies in Applied Economics).

go back up The arroba of fat cattle rose to R$ 267.75 this Thursday, with an evolution of 4% this month, according to Cepea.

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