March 27, 2009
Brazil's agriculture land prices up on favourable environment
Prices for Brazil's agriculture land increased in the first two months of 2009 due to foreign investor interest and higher soy prices which makes the crop more profitable, farming analysts AgraFNP said Wednesday (Mar 25).
The average per-hectare price rose to BRL4,373 from BRL4,330 in the last two months of 2008. Prices fell late last year with commodity prices, which declined as the global financial crisis loomed on.
The improvement in soy prices and stronger demand in new areas supported land prices, said AgraFNP analyst Jacqueline Bierhals, adding that foreigners who were leaving the market have returned again to look at the land.
Demand was particularly strong in the north and northeast where the land is usually Brazil's cheapest, but the warmer and drier climate may not be suitable for some crops, she said.
In the past three years, land prices had increased 140 percent and 116 percent in the northern areas of Balsas and Urucui, respectively, Bierhals said.
Some agronomists hope the development of more drought-resistant crops will make it easier to turn more of the drier north's land commercially productive in the future.
