The increase in interest rates and the slowdown from institutional investors are making it difficult for farmers to access fresh capital, especially following a season hit by summer rains and logistical issues.
Better financial management is urgent. However, when the credit market cools down, not everyone freezes. For large AgriBusinesses seeking loans of over $30 million, there are promising opportunities in international corporate debt due to the interest rate differential between abroad and Chile. Nevertheless, for average farmers, the outlook is more challenging, making efficient financial management crucial in the coming years.
Benjamín Barros, a partner at Agrocapital, states: “It is vital to approach the market well-prepared. In our case, all the AgriBusinesses we have advised during these two years of crisis have achieved their goals. However, some have yet to acknowledge that the capital market has changed; banks are no longer only taking the best and most solid prospects, but also at higher prices.”.
