Fiagros under pressure: high interest rates, foreign conflict and El Niño

Capital Aberto shows how Fiagros, Brazil's agribusiness investment funds, face a combination of a high Selic rate, a prolonged US-Iran conflict that has raised fertilizer, freight and energy costs, and uncertainty over El Niño. Ricardo Jacomassi, partner and chief economist at TCP Partners, reports that machinery makers, input suppliers and farmers describe tighter credit and default risk, leaving creditors on the defensive, a scenario TCP expects to last into the next crop year. “The outlook is very challenging for agribusiness,” he says.

Source: Capital Aberto, June 12, 2026.