Land Rental Markets in Brazil: A Missed Opportunity

The report finds that Brazil's land rental markets are significantly underdeveloped compared to North America and Europe, with only 3.3% of agricultural land under lease or sharecropping. This inefficiency is attributed to insecure property rights and a rigid legal framework, primarily the 1964 Land Statute, which imposes non-renounceable clauses to protect renters. The authors argue that these regulations are outdated for today's more capitalized farmers and that deregulation could boost agricultural productivity and reduce greenhouse gas emissions by facilitating the conversion of degraded pastureland to sugarcane production.

• Brazil's land rental markets are severely underdeveloped compared to other global regions; only 3.3% of Brazilian agricultural land was under lease or sharecropping contracts in the latest World Census of Agriculture, whereas the figures are approximately 33% in Europe and 38% in the United States.
• There is significant potential for environmental and economic gain by converting degraded pastureland to sugarcane production. Brazil has over 40 million hectares of such land outside the Amazon, representing more than 65% of total Brazilian cropland in 2006. This conversion could avoid a minimum of 700 million tons of CO2 equivalent emissions annually.
• The 1964 Land Statute and other legislation create disincentives for rental markets by imposing rigid, non-renounceable clauses intended to protect renters. These include rent ceilings, minimum contract durations, and preemptive rights for renters to renew contracts or purchase land.
• Land rental markets in Brazil are positively correlated with higher agricultural productivity. Municipalities with above-median rental prevalence are 19% more productive for large-scale crop farming and 24% more productive for large-scale cattle ranching.
• The sugarcane sector is particularly sensitive to land rental markets. Approximately 20% of sugarcane harvesting and 22% of production occur on land operated by lessees or sharecroppers, which is significantly higher than the national average for temporary cropland rentals (12%).
• The profile of rural renters in Brazil is dualistic. While small renters and subsistence farmers in the North and Northeast may still need legal protections, many renters in other regions are educated, wealthy, and possess the financial capacity to invest in complex agroindustrial chains.

APA

Assunção, J., & Chiavari, J. (2014). Land Rental Markets in Brazil: A Missed Opportunity. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2014/06/Land-Rental-Markets-in-Brazil-Full-Paper-English.pdf

Chicago

Assunção, Juliano, and Joana Chiavari. Land Rental Markets in Brazil: A Missed Opportunity. Climate Policy Initiative, 2014. https://www.climatepolicyinitiative.org/wp-content/uploads/2014/06/Land-Rental-Markets-in-Brazil-Full-Paper-English.pdf.

Wikipedia

{{cite report |last1=Assunção |first1=Juliano |last2=Chiavari |first2=Joana |title=Land Rental Markets in Brazil: A Missed Opportunity |publisher=Climate Policy Initiative |date=June 2014 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2014/06/Land-Rental-Markets-in-Brazil-Full-Paper-English.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{assuno2014land, author = {Assunção, Juliano and Chiavari, Joana}, title = {{Land Rental Markets in Brazil: A Missed Opportunity}}, institution = {Climate Policy Initiative}, year = {2014}, month = jun, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2014/06/Land-Rental-Markets-in-Brazil-Full-Paper-English.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }