Aug 06, 2025
Grain Storage Deficit in Mato Grosso Getting Worse
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
According to the Mato Grosso Institute of Agricultural Economics (Imea), the state of Mato Grosso only has the capacity to store 49% of the 104.9 million tons of soybeans and corn produced during the 2024/25 growing season.
Conab estimates that the state has 52 million tons of storage capacity, or a deficit of 52 million. Between 2010/11 and 2025, the grain production in the state increased on average 9.8% per year, while the storage capacity increased 4.2% per year, so the deficit grew larger every year.
The mismatch reflects the lack of investments and incentives aggravated by the high cost of credit to build storage facilities, which is particularly burdensome for smaller producers. As a consequence, many soybean producers are forced to forward contract part of their production in advance to free up space, which compromises their bargaining power and prevents selling at the most favorable moment of the market.
Brazilian farmers have long complained that it cost too much to borrow money to build storage facilities. In the 2025/26 Harvest Plan from the Brazilian government, loans for the construction of storage facilities carry an interest rate of 8.5% for small and medium size producers and 12% for larger producers. If a commercial company needs to borrow money for the construction of storage facilities, the interest rate would be 15% or more, which is the prime rate in Brazil. Until costs decline, the grain storage deficit in Mato Grosso will continue to increase.