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Brazilian Land Appreciates Over 600 Per Cent

03 March 2015

BRAZIL – Farmland prices in central Brazil have increased by nearly 700 per cent since 2002, with mean increases above 300 per cent.

The Ministry of Agriculture, Livestock and Supply has calculated that average land values increased 308 per cent in the eleven years up to 2013.

In conjunction with the University of Brasilia, the ministry conducted a study finding that in the Tocantins state, the increase was double almost double the mean increase.

Meanwhile, inflation has been at 121.9 per cent over the same period.

Land prices are 70.5 per cent of asset value of agricultural operations, a government spokesperson said.

In a statement, the government added: “The remaining amounts are distributed in buildings, facilities and improvements, permanent and temporary crops, forests and other goods such as vehicles, machinery and animals.”

Of this land, 60 per cent is in 200 hectare divisions, with productivity having a “strong correlation” with land price.

TheCattleSite News Desk

Top image via Shutterstock


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