GlobeNewswire·Aug 17, 2026, 7:00 AM ET

Brazil Senate Passes Law to Incentivize New Domestic Fertilizer Production With Several Potential Construction Funding Benefits for Brazil Potash

GRO

Brazil's Senate approved the "Profert" (Fertilizer Industry Development Program) legislation on August 11, 2026, which now awaits signature by President Lula to reduce dependency on imported fertilizers.
The bill creates a tax incentive that, when combined with SUFRAMA regulations, could reduce Brazil Potash's construction costs for the Autazes Project by up to ~US$190 million.
The legislation authorizes the government-backed BNDES investment agency to fund the construction of new domestic fertilizer production projects.
A mandatory domestic-content floor for fertilizer sold in Brazil is established, starting at 2% in 2027 and rising to 10% by 2037, with potential to increase to 30% based on supply availability.
In 2025, Brazil imported approximately 96% of its potash consumption, spending roughly US$15 billion on foreign fertilizers.
Brazil currently relies on a single conventional potash mine that covers only about 3% of domestic consumption, while nitrogen & phosphate production could resume at idled industrial plants.
Brazil Potash's Autazes Project is the largest potash project in development, with a projected capacity of 2.4 million tons per year, representing roughly 20% of current Brazilian demand.
Approximately 91% of the Autazes Project's projected capacity is already committed under long-term take-or-pay sales agreements with AMAGGI, Keytrade, & Kimia.
Eligibility for Profert tax exemptions depends on a competitive selection process under regulations from the Ministry of Agriculture & Livestock (MAPA) that have not yet been published.
There is no certainty that Brazil Potash will realize the projected benefits due to the need for specialized legal counsel to combine SUFRAMA & Profert regimes & the requirement to pass competitive selection processes.