Higher Loan Rates in Brazil Threaten Tractor Sales Rebound

Brazil has raised interest rates on farm equipment financing, threatening to constrain a much-needed recovery in tractor sales.

Borrowing costs under a key government credit line were boosted by 2 percentage points to as much as 13.5% a year, the Brazilian agriculture ministry said Tuesday. The move should have a “downward bias” on domestic tractor sales projections, according to Pedro Oliveira, head of a farm equipment sector chamber at industry group Abimaq, which represents manufacturers including Deere & Co.