The bill establishes the Fertilizer Industry Development Program, an initiative incorporating tax incentives and financing mechanisms to expand production in the South American giant.

The proposal seeks to reduce Brazilian agriculture’s vulnerability to international price fluctuations and potential supply disruptions, in a country where agricultural output relies heavily on imported inputs.

Official data indicate that Brazil imports over 80 percent of the fertilizers used in the agricultural sector; in 2025, foreign purchases reached 43.3 million tons of intermediate products.

Measures included in the initiative range from tax benefits for importing machinery to incentives for setting up industrial plants in Brazil dedicated to manufacturing fertilizers and their raw materials.

It also creates a fund to stimulate production and authorizes the federal government to transfer budget resources to the National Bank for Economic and Social Development (BNDES) to establish credit lines for the sector.

These funds will support the modernization, reactivation, and expansion of industrial facilities, as well as projects involving research, logistics infrastructure, and the production of bio-inputs, bio-fertilizers, and soil remineralizers.

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