Brazil has taken a significant step toward reducing its dependence on imported fertilizers with the approval by the Chamber of Deputies of a bill creating the Fertilizer Industry Development Program (Profert). The proposal, which now returns to the Senate for final consideration, combines tax incentives, financing mechanisms, and domestic supply requirements to support the growth of Brazil’s fertilizer industry.
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The initiative comes at a time of heightened concern over global fertilizer supply chains. Brazil currently imports approximately 85% of the fertilizers it consumes, making its agricultural sector particularly vulnerable to geopolitical disruptions and market volatility. Recent tensions in the Middle East have once again highlighted the strategic importance of securing reliable access to key agricultural inputs.
Under the proposed legislation, domestic fertilizer producers could benefit from tax credits worth up to 20% of eligible production expenditures. The program would provide up to R$2 billion annually between 2027 and 2031, representing a potential total investment of R$10 billion. Eligible products include conventional fertilizers such as urea, ammonia, phosphates, potassium chloride, sulfur, and phosphoric acid, as well as bio-inputs and biofertilizers.
The bill also establishes the National Fertilizer Production Incentive Fund, designed to support investments across the fertilizer value chain. The fund could provide credit guarantees, financing support, and resources for research, innovation, and technological development. In addition, the Brazilian Development Bank (BNDES) would be authorized to finance the modernization, expansion, and reopening of production facilities, as well as investments in logistics and infrastructure.
A notable feature of the proposal is the introduction of minimum domestic content requirements. Starting in 2027, fertilizers sold in Brazil would need to contain at least 2% domestically produced inputs, with the share gradually increasing to 10% by 2037. The National Fertilizer and Plant Nutrition Council (Confert) would have the authority to raise this threshold further, potentially reaching 30% if supported by production capacity and impact assessments.
The initiative aligns with broader efforts to strengthen food security and agricultural resilience. By encouraging local production and investment, Brazil aims to reduce strategic dependencies while supporting long-term competitiveness in one of the world’s largest agricultural economies.
More broadly, the proposal reflects a growing international trend toward securing critical agricultural inputs through domestic production, diversification, and innovation. As fertilizer supply chains continue to face geopolitical and economic pressures, countries are increasingly viewing nutrient security as an integral component of food security and sustainable agricultural development.
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