Brazil Senate Passes Profert Law to Boost Domestic Fertilizer and Cut Imports

Key Facts

In a strategic move to secure agricultural supply chains, the Brazilian Senate has approved the Profert bill to modernize fertilizer infrastructure and reduce heavy reliance on foreign imports. According to reports, this legislation seeks to address domestic supply gaps after Brazil spent approximately $15 billion on imported fertilizers in 2025. The new law introduces tax incentives and funding pathways via the Brazilian development bank (BNDES) to support national projects.

The legislation is expected to provide significant tailwinds for Brazil Potash's Autazes Project, potentially reducing construction costs by approximately $190 million through tax exemptions. Furthermore, the law mandates a domestic-content floor for fertilizers, starting at 2% in 2027 and rising to 10% by 2037. These measures are critical as Brazil currently imports 96% of its potash, an essential input for its massive soybean and corn farming sectors.

Regarding economic data, Brazil's inflation figures released on August 11, 2026, showed a yearly rate of 4.44%, coinciding with government efforts to bolster structural stability in the agribusiness sector. Investors are now watching for President Luiz Inácio Lula da Silva's final signature to enact the bill, while specific instrument price data remains unavailable at this time (close August 17, 2026).