The steady rise in court-supervised restructuring filings among agribusiness companies, driven by high debt loads and shrinking profitability in recent years, is expected to continue through 2026. According to economists and restructuring specialists, conditions should only begin to improve around mid-2027, helped by stronger agricultural commodity prices and lower interest rates, which reduce borrowing costs, Valor reported.
For now, the environment remains turbulent. In the third quarter, 443 agribusiness companies were undergoing judicial recovery, a 67.8% jump from the same period last year, according to Monitor RGF, published by consultancy RGF&Associados. It is the highest quarterly figure in the survey’s historical series.
The consultancy says agribusiness is currently the sector with the highest proportion of companies in judicial recovery. In the third quarter, out of every 1,000 active agribusiness firms, 12.63 were in restructuring, based on the IRJ indicator. In manufacturing, the second-highest sector, the IRJ stood at 6.49. The national average was 2.04.
“This elevated level can be explained by four structural traits: capital-intensive operations with higher debt compared to other sectors; exposure to multiple simultaneous shocks, including price, weather, and exchange rates; a fragile financing structure, since long-term needs are funded with short-term debt; and a lack of professionalization among family-run groups,” says Rodrigo Gallegos, a partner at RGF.
Monitor RGF also reports that of the eight agribusiness companies that exited judicial recovery in the third quarter, four went bankrupt. The other four resumed operations without court supervision.
