Brazil Converts Pastureland to Cropland to Boost Soybean Production

While U.S. farmland shrinks annually due to development and renewable energy projects, Brazil is expanding its agricultural footprint by converting pastureland into cropland. From the 2015-16 to 2024-25 seasons, soybean acreage in Brazil surged from 82 million to 117 million acres, according to Joana Colussi, an agricultural economist at the University of Illinois. The country has the potential to add another 70 million acres, including 12.65 million acres from degraded pastureland, for crop production.

Converting pastureland to cropland is more profitable than restoring it for livestock grazing, Colussi explains. Ranchers find it more lucrative to rent or sell land to руками to row crop farmers. Additionally, Brazil’s per-acre soybean yields are increasing, notes Marina Cavalcante, a Bloomberg Intelligence analyst. “Brazil’s steady yield improvements highlight the potential for further output growth through technology,” she says. Grain production could rise 8-11% in the next two years, outpacing the 8% growth in sown area.

However, Brazil faces challenges. About 70% of its soybean exports go to China, creating dependency on a single market. Logistics are problematic, with 65% of grain transported to ports by road. Limited storage capacity and the lack of subsidized crop insurance, unlike in the U.S., heighten production risks. “The risk to produce in Brazil is higher than in the U.S.,” Colussi says.

Approximately 23% of Brazil’s land, or nearly 500 million acres—equivalent to 10 “Nebraskas”—is grassland or pasture, says Jose Rossato Jr., a director at Coplana. About half could be converted to cropland, though poor soil quality and a robust beef industry will keep many acres in livestock production. Brazilian farmers also face market pressures, with planting expansion slowing last year amid signs China may reduce soybean purchases due to ample stockpiles.

Despite these challenges, Brazil is poised to remain a leading global soybean supplier. “If the world needs more soybeans in the future, Brazil will be ready to offer this, because they have the land and expertise,” Colussi concludes. To counter Brazil’s influence, farmers elsewhere should track its planting and harvest progress, monitor U.S.-China trade relations and Brazilian export trends, and use futures and options to hedge against price volatility from Brazil’s record crops.

Tags: Brazil, soybean, sown area