Agrarian structure, foreign land ownership, and land price in Brazil

Sauer, Sergio and Sergio Pereira Leite

Text in Portugese.

The recent world rush for farmlandd has made Latin America, in general, and Brazil in particular target in this process with a great increase of foreign investments on purchasing land, including the financial enterprises in the last decade. Even having a very illiquid market, land deals and foreign investments in agribusiness are not new in Brazil, but has increased considerably after 2002. According to some field researches most of the recent investments are related to the production of grains (especially soybeans) and sugarcane (to produce sugar and ethanol), resulting among other consequences in a great increase of land prices in some regions of Brazil. Such rush for land has led the Brazilian government to reestablish a legal mechanism to controll these foreign investments in land deals. However, since the National Institute for Colonization and Agrarian Reform (INCRA in Portuguese) has registered a great number of land titling in name of Brazilian companies, it seems there is an ongoing cheating process in these land deals.

Event: International Conference on Global Land Grabbing

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Document type:Agrarian structure, foreign land ownership, and land price in Brazil (787 kB - pdf)