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

The report analyzes the economic drivers of deforestation in the Brazilian Amazon, comparing land price dynamics and cattle production inside and outside the Amazon biome. It finds that while cattle growth outside the Amazon is driven by meat and milk demand (increasing land prices), growth within the Amazon is strongly linked to land grabbing, which increases the supply of land and reduces its price. The authors argue that policies focusing solely on cattle productivity are insufficient for the Amazon; instead, addressing land grabbing and improving land security are critical to decoupling beef production from deforestation.

• In the Brazilian Amazon, cattle ranching is a primary driver of deforestation, with approximately 70% of deforested land in the region being used for cattle ranching.
• The economic drivers of cattle ranching differ significantly between the Amazon and other regions of Brazil: in the Amazon, an increase in the cattle herd is associated with a decrease in land prices, whereas outside the Amazon, cattle growth is associated with increasing land prices.
• The expansion of the cattle herd within the Amazon is linked to increasing levels of pasture degradation, indicating an extensive business model characterized by low investment and low productivity, fueled by land grabbing and speculation.
• Because land grabbing explains a substantial part of the relationship between cattle ranching and deforestation in the Amazon, policies that only increase cattle productivity are insufficient; effective solutions must address land grabbing and the security of land rights.

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} }