News

Farmland values in Brazil soaring

Farmland prices in Brazil have been on a similar trajectory to values in the U.S.

Michael Cordonnier with Soybean and Corn Advisor says Brazilian farmers have enjoyed record-high corn and soybean prices the past two years, encouraging expansion mainly in devalued pastures converted to row crops.

“So the area that’s already been cleared is very valuable because everybody wants to expand their production, and not so much for deforestation of the Amazon areas. So commodity prices have really spurred an increase in land values.”

He tells Brownfield the land market is leveling off in Brazil and farmers there are holding onto soybeans in hopes of better prices.

“But unfortunately it’s going the wrong direction, (down). So some of the farmers have to sell their soybeans now (and) going forward because they need space for the Safrinha corn.”

Cordonnier says that’s bad news for soybean prices in the U.S. that are currently about $2 more expensive than Brazilian beans.