Feb 12, 2024
Increase in Brazil Land Values Slowed due to Low Commodity Prices
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Commodity prices in Brazil are at their lowest level in several years and that is being reflected in the value of agricultural land. The value of agricultural land used for grain production in Brazil increased 3.2% in 2023 compared to an increase of 60% over the three prior years according to Fundacao Getulio Vargas.
The reason for the slowed valuation is declining commodity prices. According to the Center for Advanced Studies in Applied Economics (Cepea), in 2023 the price of soybeans in Brazil declined 22.2%, corn declined 25.0%, wheat declined 26.4%, and cotton declined 34.0%
Below are the prices of land in 2023 for grain production and pastureland in southern Brazil and the national average.
| Land for grain production in Parana | R$ 106,800 per hectare, $8,650 per acre. |
| Land for grain production in Sao Paulo | R$ 74,900 per hectare, $6,060 per acre. |
| Land for grain production in Rio Grande do Sul | R$ 64,100 per hectare, $5,200 per acre. |
| Land for grain production - average in Brazil | R$ 55,700 per hectare, $4,500 per acre. |
| Pastureland in Sao Paulo | RS 33,900 per hectare, $2,750 per acre. |
| Pastureland in Parana | R$ 31,200 per hectare, $2,520 per acre. |
| Pastureland in Santa Catarina | R$ 27,200 per hectare, $2,200 per acre. |
| Pastureland - average in Brazil | R$ 15,200 per hectare, $1,230 per acre. |