Brazil’s Senate-approved Profert legislation could affect the funding requirements for Brazil Potash Corp.’s Autazes Potash Project, but the bill still requires President Luiz Inácio Lula da Silva’s signature before becoming law. The company says the proposed measures, potentially combined with the SUFRAMA regime, could reduce the capital required before construction begins.
#Profert awaits presidential approval
Profert, identified as Bill PL 699/2023, was approved by Brazil’s Chamber of Deputies on May 27, 2026, and by the Senate on August 11, 2026. It now awaits signature by President Lula. The source says that signature is expected in the coming weeks, but the legislation has not yet been enacted.
The proposed programme is intended to support domestic fertilizer production and reduce Brazil’s reliance on overseas supply. Brazil spent roughly US$15 billion on fertilizer imports in 2025, while approximately 85% of the fertilizer it consumed came from imports, according to figures cited from Brazil’s Ministry of Development, Industry, Trade and Services. Approximately 96% of potash was imported from a small number of supplier countries.
#Tax credit, BNDES financing and domestic-content rules
The bill combines three instruments: a tax credit for domestic fertilizer production, a Brazilian development bank (BNDES) credit line to finance sector infrastructure, and a mandatory domestic-content floor for fertilizer sold in Brazil.
The domestic-content requirement would begin at 2% in 2027 and rise to 10% by 2037. It could increase to 30%, subject to supply availability. The legislation also creates a production tax credit of up to 20% of investment in domestic fertilizer production, capped at R$2 billion per year between 2027 and 2031.
BNDES would be authorised to invest in the construction of new domestic fertilizer production capacity. The available material does not state whether Brazil Potash would receive BNDES funding or specify the amount or terms of any such financing.
#Potential effect on the Autazes Project
Brazil Potash is developing the Autazes Project in Amazonas. The project has a projected capacity of 2.4 million tons per year, and approximately 91% of that projected capacity is committed under long-term take-or-pay sales agreements with AMAGGI, Keytrade and Kimia.
According to a technical analysis of the project’s financial model cited by Brazil Potash, combining Profert with SUFRAMA could exempt up to ~US$190 million in federal taxes on the project’s US$2.5 billion in initial capex. The company says this could reduce the amount of capital it needs to raise before construction begins by approximately 7%.
The tax-credit mechanism is separate from that capex analysis. The source also states that the proposed legislation could provide a production tax credit of up to 20% of investment in domestic fertilizer production, subject to the cap of R$2 billion per year between 2027 and 2031.
#Eligibility remains conditional
Brazil Potash would not automatically qualify for the proposed Profert exemptions on equipment and construction materials. Eligibility would depend on a competitive selection process governed by regulations from Brazil’s Ministry of Agriculture and Livestock, or MAPA. Those regulations have not been published.
The company would also require specialised legal and tax advice concerning the possible combination of the SUFRAMA and Profert regimes. Brazil Potash states that there is no certainty the potential benefits will be realised.
The source identifies further uncertainties involving Profert’s enactment and implementation, eligibility for government programmes and competitive selection processes, the interaction between SUFRAMA and Profert, required licences and permits, project financing and the company’s ability to raise additional funds for construction. The transaction and proposed support measures therefore carry further terms and conditions beyond those set out above.
#Domestic potash supply constraints
The source distinguishes potash from nitrogen and phosphate, noting that production of the latter two nutrients could resume at idled industrial plants. Brazil’s current potash production capacity, however, is described as insufficient to meet the proposed domestic-content requirements. The country’s existing conventional potash production is said to cover only about 3% of domestic consumption.
Brazil Potash’s President Sérgio Leite said Profert would not by itself resolve Brazil’s potash dependence, but could establish a domestic market requirement for production and reduce the capital needed by projects such as Autazes. These comments describe the company’s view of the legislation and do not establish that the proposed benefits will be obtained.
#Key Takeaways
- Profert was approved by Brazil’s Senate on August 11, 2026, but still awaits President Lula’s signature and has not yet become law.
- The bill combines a domestic fertilizer tax credit, BNDES infrastructure financing and domestic-content requirements starting at 2% in 2027 and rising to 10% by 2037, with potential to reach 30% subject to supply availability.
- Brazil Potash says Profert combined with SUFRAMA could exempt up to ~US$190 million in federal taxes on the Autazes Project’s US$2.5 billion in initial capex.
- Access to the proposed exemptions depends on a competitive MAPA selection process, unpublished regulations and additional legal and tax work; the company says there is no certainty the benefits will be realised.
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