The Economics of Cattle Ranching in the Amazon: Land Grabbing or Pushing the Agricultural Frontier

This report finds that deforestation in the Brazilian Amazon is primarily driven by land grabbing rather than meat demand. Unlike other regions of Brazil where cattle growth increases land prices, in the Amazon, cattle expansion is associated with falling land prices and increased pasture degradation, reflecting an extensive, low-productivity business model fueled by the illegal occupation of public lands.

• Cattle ranching is a primary driver of deforestation in the Amazon, with estimates indicating that approximately 70% of deforested land in the region is utilized for this purpose.
• The economic driver of deforestation in the Amazon differs from the rest of Brazil. Outside the Amazon, cattle growth is linked to increased demand for meat and milk, which raises land prices. In contrast, within the Amazon, an increase in the cattle herd is associated with a decrease in land prices, suggesting that deforestation is driven by land grabbing rather than food demand.
• Cattle ranching in the Amazon follows an extensive business model characterized by low productivity and low investment. This is evidenced by the fact that the expansion of the cattle herd in the Amazon is associated with increasing levels of pasture degradation, a trend not observed in cattle ranching outside the Amazon.
• Public lands in the Amazon are highly vulnerable to land grabbing and speculation. While 60% of land in the Amazon is classified as public, compared to only 12% in the rest of Brazil, some of these public lands have been illegally registered as private property in the Rural Environmental Registry (CAR).

APA

Climate Policy Initiative (2021). The Economics of Cattle Ranching in the Amazon: Land Grabbing or Pushing the Agricultural Frontier. https://www.climatepolicyinitiative.org/publication/the-economics-of-cattle-ranching-in-the-amazon-land-grabbing-or-pushing-the-agricultural-frontier/

Chicago

Climate Policy Initiative. The Economics of Cattle Ranching in the Amazon: Land Grabbing or Pushing the Agricultural Frontier. 2021. https://www.climatepolicyinitiative.org/publication/the-economics-of-cattle-ranching-in-the-amazon-land-grabbing-or-pushing-the-agricultural-frontier/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=The Economics of Cattle Ranching in the Amazon: Land Grabbing or Pushing the Agricultural Frontier |date=5 October 2021 |url=https://www.climatepolicyinitiative.org/publication/the-economics-of-cattle-ranching-in-the-amazon-land-grabbing-or-pushing-the-agricultural-frontier/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2021economics, author = {{Climate Policy Initiative}}, title = {{The Economics of Cattle Ranching in the Amazon: Land Grabbing or Pushing the Agricultural Frontier}}, institution = {Climate Policy Initiative}, year = {2021}, month = oct, url = {https://www.climatepolicyinitiative.org/publication/the-economics-of-cattle-ranching-in-the-amazon-land-grabbing-or-pushing-the-agricultural-frontier/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }