Tax Reform and Agribusiness: What Changes for Producers and Cooperatives
Understand how Brazil's tax reform (LC 214/2025) affects Brazilian agribusiness: rural producers, cooperatives, agricultural inputs, PIS/PASEP and Cofins.
Executive Summary: Agribusiness feels the tax reform in the purchase of inputs, in the sale of production and in the way cooperatives and producers organize their cash flow. The final effect will depend on the rates and the sector-specific treatment, but it is already possible to identify where the main risks and opportunities lie.
Current Landscape of Agribusiness Taxation
Agribusiness today coexists with:
- PIS/PASEP and Cofins on a significant share of revenue;
- ICMS on the purchase and circulation of inputs and goods;
- specific treatment for exports in some cases;
- dedicated regimes for cooperatives and certain rural structures.
In addition, fertilizers, crop protection products, machinery and equipment carry a tax burden that directly affects the producer’s cash flow.
Impact on Agricultural Inputs
The most sensitive issue for producers is the input chain. The reform touches precisely where agribusiness is most exposed: production cost, credit on purchases and margin predictability.
In practice, producers need to watch for:
- whether non-cumulativity will be effective for their profile;
- which expenses will actually generate credit;
- how the transition will affect cooperatives, resellers and suppliers.
Practical example: A soybean farm that buys R$ 500,000 a year in fertilizers should not look only at the final rate. It needs to understand whether the tax embedded in the purchase will continue to pressure cash flow, or whether the new system will allow a more efficient recovery of that cost.
Selling the Harvest
In grain sales, the debate revolves around two questions:
- how CBS will be applied to the primary product and to the processed product;
- how IBS and credits will affect the operation’s margin.
Without the final sector regulation, the prudent path is to avoid closed numerical projections and work with scenarios.
Agricultural Cooperatives
Cooperatives play a central role in the sector and cannot be treated as an ordinary company at every stage. The reform demands attention because any change in the logic of benefit, offset or export affects not only the cooperative, but also its members.
The points of attention are:
- preserving the differentiated treatment that exists today;
- operationalizing credits and surpluses;
- correctly reading the rules applicable to exports and integration.
Practical example: A coffee cooperative that sells to exporters needs to confirm, in the regulation, how the new system will preserve the treatment currently associated with exports and the cooperative structure.
Example: Grain Producer in Mato Grosso
Scenario: A farm grows soybeans and corn, operates with high input costs, and needs to decide whether to keep its current structure or review its tax framework.
Under the current system, the tax burden appears both on revenue and on the purchase of inputs. With the reform, the decision now depends on:
- definitive rates;
- credit rules for inputs;
- compatibility of the chosen regime with the rural operation.
In other words: the answer will not come from an isolated rate, but from the complete design of the chain.
What Rural Producers Should Do Now
- Project cash flow per harvest under more than one tax scenario.
- Map critical inputs to understand where credit can make a difference.
- Review contracts with cooperatives, grain dealers and trading companies before the transition advances.
- Assess the current structure to know whether it is worth staying, migrating or reorganizing the operation.
Want to understand how the tax reform affects agribusiness, rural producers and cooperatives? On /en/napratica, VMAHUB publishes practical guides for companies. For a personalized analysis of your case, talk to our team: [email protected]
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