Brazilian Sicoob Increased Credit Resources by 18% for the 2026/27 Agricultural Season

Sicoob, one of Brezilya's leading financial cooperatives, decided to increase its rural credit resources by approximately 18% for the 2026/27 agricultural season. The company plans to provide a total of 70 milyar Brezilya Reali in financing to the agricultural sector during this season. Having processed a credit volume of 59,5 milyar Real last season, the institution nearly reached its 60 milyar Real target announced in temmuz of last year with this figure. The 18% growth in the new period demonstrates the institution's commitment to the agricultural and livestock sectors. As a result, Brezilya's massive agricultural sector will be able to access its needed financing much more strongly.

The distribution of the planned massive 70 milyar Real resource within the sector has also been strategically determined. 32 milyar Real of this amount will be allocated to credit operations that will help farmers cover their daily operational costs and production expenses. Approximately 18,7 milyar Real will be directed towards long-term investments, such as the modernization of farm infrastructure and the acquisition of new agricultural technologies. 1,9 milyar Real was allocated for the industrial processing of production, and a share of 4,3 milyar Real was created for the marketing and trade activities of the products. The remaining 12,6 milyar Real portion will be allocated to free-use areas such as Financial Rural Product Notes (CPRF) and rural working capital.

This credit package offered by Sicoob has a comprehensive structure, considering the diversity of the farmer profile in Brezilya. Almost 40% of the total resource was designed to focus on small and medium-sized producers, who are the backbone of the country's agriculture. A special fund of 11,5 milyar Real is planned to be allocated to small producers under the National Program for Strengthening Family Agriculture (Pronaf). Through the National Program for Support to Medium-Sized Producers (Pronamp), a financing opportunity of 15,8 milyar Real will be offered to these farmers. These steps will support rural development while also greatly contributing to the bottom-up expansion of the agricultural production capacity across the country.

Looking at the sectoral usage areas of the distributed funds, agricultural production is by far the priority. 27,8 milyar Real, corresponding to approximately 40% of the total resource, will be used to finance agricultural activities, especially soybean and coffee production. The livestock sector, particularly cattle breeding, will hold 28% of the total resources with a share of 19,5 milyar Real. 12,6 milyar Real was allocated for CPRF transactions for various agricultural products. However, it is noteworthy that this figure represents a decrease of 34,2% compared to the previous season and that the institution has slightly changed its strategy in this area.

Company officials stated that these announced figures confirm Sicoob's deep commitment to being a permanent and reliable source of financing for rural credit. Marco Aurélio Almada, CEO of the financial cooperative, emphasized at their press conference that their institution is highly determined to meet the demands of its members. He stated that they continue to offer credit despite challenging economic conditions, such as rising debt ratios and still-high interest rates. Almada particularly highlighted that they are doing their best not to leave producers alone during this period when other major financiers in the market are withdrawing. Because Brezilya Bankası's (Banco do Brasil) announcement last week that it offered lower financing for the season starting on 1 Temmuz made the importance of institutions like Sicoob much more evident in the markets.