Brazil rural credit defaults surge 10x in 3 years, turning systemic

Overdue rural producer loans (>90 days) jumped from R$3.8B (Jul 2023) to R$38.4B (Apr 2026), a ~10x increase, per Agroicone analysis of Banco Central data. Problematic operations (overdue, extended, renegotiated, default) rose from R$34B, signaling deterioration from 'controlled' to 'systemic'. This strains Brazilian agricultural credit markets and may pressure banks' asset quality and rural sector financing.