São Paulo – The price of land in Brazil has increased by 308% on average between 2002 and 2013, according to a survey conducted by the Strategic Management Advisory of the Brazilian Ministry of Agriculture, Livestock and Supply (AGE/Mapa), alongside a researcher from the University of Brasília. The rate increased much more than the IGP-DI inflation index measured by Fundação Getúlio Vargas (FGV), which was up 121.9% during the time period.
According to one of the authors of the survey, AGE’s José Gasques, roughly 60% of the value of land in the country is in properties larger than 200 hectares. As per the survey agricultural productivity correlates strongly with the price of crop and grazing lands. Thus, the enhancement of agricultural productivity can fuel demand for land, as well as push prices up.
*Translated by Gabriel Pomerancblum
