Land Rental Markets in Brazil: A Missed Opportunity

This report by the Climate Policy Initiative examines the underperformance of land rental markets in Brazil and argues that deregulation could improve agricultural productivity and environmental protection by enabling more efficient land use.

• Brazil's land rental markets are significantly smaller than those in other regions; according to the latest World Census of Agriculture, only 3.3% of Brazilian agricultural land is under lease or sharecropping contracts, compared to approximately 33% in Europe and nearly 38% in the United States.
• There is significant potential to increase agricultural value and reduce greenhouse gas emissions by converting degraded pastureland to sugarcane production. Estimations from Assad (2014, forthcoming) indicate there are over 40 million hectares of degraded pastureland outside the Amazon suitable for sugarcane, which is more than 65% of total Brazilian cropland as of 2006.
• The underperformance of Brazil's land rental markets is attributed to insecurity of property rights, a lack of effective dispute resolution, and an outdated legal system. Current legislation imposes non-renounceable clauses intended to protect renters—such as rent ceilings, minimum contract durations, and preemptive rights to purchase land—which now create disincentives for market growth.
• In regions where sugarcane is concentrated, leasing and sharecropping are more common on larger farms, and renters tend to be more educated and wealthier. The report finds a correlation between better functioning land rental markets and higher sugarcane productivity in these areas.
• The report concludes that deregulating land rental markets and updating outdated regulations would contribute to more efficient land use and should be integrated into national policies for agricultural development and environmental protection.

APA

Climate Policy Initiative (2014). Land Rental Markets in Brazil: A Missed Opportunity. https://www.climatepolicyinitiative.org/publication/land-rental-markets-in-brazil-a-missed-opportunity/

Chicago

Climate Policy Initiative. Land Rental Markets in Brazil: A Missed Opportunity. 2014. https://www.climatepolicyinitiative.org/publication/land-rental-markets-in-brazil-a-missed-opportunity/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Land Rental Markets in Brazil: A Missed Opportunity |date=25 June 2014 |url=https://www.climatepolicyinitiative.org/publication/land-rental-markets-in-brazil-a-missed-opportunity/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2014land, author = {{Climate Policy Initiative}}, title = {{Land Rental Markets in Brazil: A Missed Opportunity}}, institution = {Climate Policy Initiative}, year = {2014}, month = jun, url = {https://www.climatepolicyinitiative.org/publication/land-rental-markets-in-brazil-a-missed-opportunity/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }