Agriculture Growth

The value of Brazilian land is increasing at a rapid rate, making the country’s landowners some of the smartest investors of the past few years.

While the global economic landscape has been anything but smooth since the crisis of 2008, land values have increased by leaps and bounds during that time. In the past four years, land has been one of the most fruitful investments in the country, outperforming gold and the stock market. In fact, dating back to 2003, the value of the average hectare—roughly two-and-a- half acres—has more than tripled.

While the entire country is benefiting from this trend, there are areas that have seen stronger increases in land value than others. For example, the North and Northeast regions of Brazil have seen an enormous growth in land value. But regardless of the location, much of this trend can be attributed to one thing—the growth in business pertaining to agriculture, or agribusiness. Many of Brazil’s crops are becoming increasingly desirable exports, which has helped improve the value of the land they are grown on.

This is interesting information for businesses around the world and is definitely something investors should be cognizant of. Working with agricultural companies in Brazil could prove to be a smart business decision, but only if proper precautions are made ahead of time. Working with lawyers in Brazil will help businesses understand the rules and regulations pertaining to agriculture, land investments, and imports and exports of related products.