Investor Presentaiton
THE VARIATION IN
BRAZILIAN LAND
PRICES (2006-2017)
Between 2006 and 2017, the country's total land value
ranged from US$ 380.9 billion to US$ 849.2 billion
an increase of 122.92%, equivalent to an average
appreciation of 7.56% per year. For comparative purposes,
the 2017 value corresponds to 57.8% of Brazil's GDP
when quantified in 2020 values (US$ 1.4 trillion). In
absolute values, the data shows a significant increase
in central southern Brazil, and greater relative variations
in the northern region and in Matopiba³ (Figure 1).
The country's average price per hectare increased 90%,
while this percentage reached 205% in the northern region
and 195% in Matopiba. These regions also registered
the country's highest deforestation rates between 2006
and 2017, concentrating 59% of all deforestation in
Brazil, the equivalent of 13.6 million hectares (Mha).
However, the evolution in land prices over the years
may be the result of several factors, some of them
localised, such as the increase in infrastructure
availability. Therefore, to understand the specific
impact of deforestation on the Brazilian land market
as a whole, it was necessary to isolate its effect.
FIGURE 1. ABSOLUTE VARIATION (R$/HA) AND RELATIVE
VARIATION (%) OF LAND PRICES FROM 2006 TO 2017
Absolute
variation (R$/ha)
0
250
500
1000
2000
4000
8000
16000
3 According to the Brazilian Agricultural
Research Corporation (Embrapa), Matopiba
is a region mainly comprising Cerrado
areas in the states of Maranhão (MA),
Tocantins (TO), Piauí (PI) and Bahia (BA)
[MATOPIBA is the acronym combining the
four states' initials]. This region stands out
for its agricultural and animal husbandry
production, especially grains and fibres.
Available in Portuguese at:
https://www.embrapa.br/tema-matopiba,
accessed on 26 January 2022.
Relative variation (%)
+25%
+ 50%
+ 100%
+ 200%
>+ 400%
Source: original survey
results. Prices in real
terms from 2017.
HOW DOES BRAZILIAN AGRIBUSINESS BENEFIT FROM DEFORESTATION?
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