Investor Presentaiton
Type of use
(agricultural,
cattle raising
etc.)
Type of
production
Expectation
of future gains
derived from land
Availability
of water for
irrigation
Precipitation
conditions
Soil quality
and conditions
WHAT
INFLUENCES
THE PRICE
OF LAND?
Producer's
education level
Proximity to
cities, ports,
logistical centres
Land
supply
Available
infrastructure
(roads,
internet)
Agricultural
aptitude
Access to
technical
guidance
The market value of a piece of land is
influenced by several factors. Some are
concrete and visible, such as infrastructure
availability and proximity to cities.
Others are less tangible, but still contribute
to the development of the area and its
consequent increase in value, such as
access to technical guidance, for example.
Demand
for land
By isolating the land supply that derives from deforestation from the other factors
influencing land price variation ā that is, by observing deforestation's specific impact
on price variation as if the other factors did not exist - we can identify that:
Deforestation
Increas supply in the
Brazilian land market
Reduction in land prices
ā
Producer with
resources and land
supply in his region
Producer without
resources or without
land supply in his region
BENEFITTED from
deforestation, more
favourable prices,
increasestate size and
production volume.
IMPAIRED by
deforestation land.
HOW DOES BRAZILIAN AGRIBUSINESS BENEFIT FROM DEFORESTATION?
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