Brazil: rural credit, potato harvest, biotechnology and weather shape the start of July.

The first week of July 2026 was marked by the announcement of the 2026/2027 Crop Plan in Brazil, the start of new potato harvest areas in the Southeast, advances in biotechnology, and new sanitary and logistics regulations affecting the fruit and vegetable market. These factors are guiding the productive sector’s planning in terms of field operations, financing and distribution. 
 

Crop Plan drives investments for agriculture

The federal government launched the 2026/2027 Crop Plan, with BRL 525.1 billion (USD 101.47 billion) for commercial agriculture and BRL 97.3 billion (USD 18.802 billion) for family farming. Part of the resources will be allocated to modernization, storage and irrigation, with lower rates in credit lines such as Moderfrota and Pronaf. However, agribusiness entities question whether operating and marketing credit lines have suffered a real reduction compared with the previous cycle, while high rural indebtedness continues to limit producers’ access to credit. 
 

Potato market begins winter harvest

In the potato market, Cepea/Hortifruti Brasil reported stability and slight variations in ágata potato prices between late June and early July. Prices fell in São Paulo and Rio de Janeiro, linked to increased shipments from Cristalina, while prices rose in Belo Horizonte. The main development was the start, still at low volumes, of the winter harvest in Vargem Grande do Sul, with increases expected from the second half of July. In Bahia, Chapada Diamantina showed a recovery in productivity thanks to irrigation and lower temperatures. 
 

Biotechnology and phytosanitary management

In biotechnology, researchers from Embrapa Clima Temperado and the Federal University of Pelotas identified 199 wild relatives of agricultural crops in the Pampa biome, including a wild potato variety with natural antifreeze compounds in its leaves, capable of providing resistance to severe frosts. In addition, Hortitec 2026 presented new phytosanitary tools for managing diseases such as blackleg and early blight, while the input market showed relief in nitrogen fertilizers and high prices for phosphates. 
 

New regulations and weather conditions

In São Paulo, a new sanitary regulation banned the entry of wooden or cardboard packaging into specific food handling areas, accelerating the transition to washable plastic crates and forcing distributors and supply centers to adjust their logistics. At the same time, road freight transport remains under pressure due to stable diesel prices and new fee adjustments and operational controls at supply centers in the south of the country.

On the weather front, a polar air mass that caused frosts and sub-zero temperatures in the South and Southeast began to lose intensity, although a new cold front will bring heavy rainfall, wind gusts and low temperatures from northern Rio Grande do Sul to southern Paraná. In Santa Catarina, technical agencies launched new El Niño monitoring tools, with a probability above 90% that the phenomenon will persist until early 2027.