Brazil’s Supreme Court allowed to overturn ‘soy moratorium’ in Amazon forests

Brazil’s Supreme Court has allowed the country’s largest agricultural state, Mato Grosso, to revoke tax breaks for participants in the Soy Moratorium, a voluntary agreement that prohibits the purchase of soybeans from areas of the Amazon cleared since 2008. The decision weakens an environmental initiative that has previously slowed the destruction of tropical forests, Reuters reports.

Farmer lobbies across the country are seeking to overturn the moratorium, arguing that it harms soybean producers. They have filed a lawsuit against major agribusinesses (including ADM, Bunge, Cargill, and others), demanding compensation for abandoning their lands. Under forestry rules, landowners in the Amazon can clear only up to 20 percent of their property for crops. The moratorium has cost the state 20 billion reais ($3.3 billion), according to advocacy groups.

Judge Flavio Dino acknowledged the moratorium’s importance for the environment, but ruled that the state has the right to set its own tax criteria. The decision will come into force in 2026, after confirmation by a panel of judges.

The Abiove trade association is ready to negotiate with the Mato Grosso authorities, noting that the benefits already granted will remain in force. So far, no compromise has been reached between farmers and traders.

Tags: Brazil, soybean