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Brazil: Agri-finance impacted by land ownership rules

29 July 2011

Christian de Lima Ramos and Ben-Hur Cabrera of São Paulo-based law firm Ramos, Zuanon e Manassero Advogados examine the restrictions that exist in land ownership in Brazil and assess the implications for those financing agri-sector deals.

Read more: RZM Advogados Brazil commodity finance agri-finance land ownership collateral agent secutiry package

Over the last 50 years, Brazil has experienced a period of fast development in its agriculture, to become today a global powerhouse in the production and export of agri-commodities. According to data gathered by the Brazilian Ministry of Agriculture, from 1960 to 2010, Brazilian grain production increased 766%, while cattle numbers increased 251%. There is good evidence that this pace of growth will not slow-down for the next decade and Brazil will continue to gain even greater prominence in the supply of food to the world, with exports being projected by the Brazilian Ministry of Agriculture to increase 39% for soybeans, 45% for sugar and 56% for corn, among other products.

It is important to point-out that, due to all environmental concerns and initiatives, the future production growth is expected to arise mostly from gains of productivity and not from an increase of the agricultural area. Therefore, in order to...


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