Foreign Investment in Agriculture in MERCOSUR Member Countries

The report examines foreign investment in agriculture across MERCOSUR, identifying three primary models: state-level cooperation agreements, direct private land purchases, and foreign direct investment in production via contract farming. It highlights a general lack of reliable data, though estimates suggest foreign ownership varies significantly, from 1.7% of arable land in Brazil to 19.4% of national territory in Paraguay. While Brazil and Argentina have implemented laws to restrict foreign land ownership, Uruguay is debating similar measures, and Paraguay has seen little public discussion on restrictions despite high foreign ownership. The document recommends the establishment of national land registries and clear definitions of 'foreign stakeholders' to better manage and monitor these investments.

• Foreign investment in MERCOSUR agriculture follows three main models: investment cooperation agreements between states or state-owned companies, direct land purchases or long-term leases by the private sector, and foreign direct investment in agricultural production, often through contract-farming.
• There is a significant disparity in the estimated amount of foreign-owned land across member states: Brazil is estimated at 1.7% of total arable land, Argentina at 3.4% of overall arable land, and Paraguay at 19.4% of the national territory.
• Argentina has implemented Law No 26.737 to restrict foreign land ownership, limiting foreigners to 15% of total agricultural land in the country, province, or municipality, and prohibiting ownership in frontier areas or near permanent water bodies.
• Brazil has had restrictions on foreign land purchases since 1971 under Law No. 5,709 and is the only MERCOSUR country with a centralized national land property registration mechanism (SNCR) managed by INCRA.
• In Paraguay, foreign land ownership is high, particularly by Brazilians, but there has been minimal public or political debate regarding the imposition of restrictions on these investments.
• Uruguay lacks a comprehensive estimation of foreign land ownership because its records track natural persons but not foreign business corporations, though informal reports suggest corporations own 1.8 million hectares.
• Argentinean agricultural firms, such as El Tejar, Los Grobo, and MSU, are highly active in the region, utilizing contract farming to expand production in Brazil and Paraguay.
• State-level cooperation agreements are rare in the region; Argentina is the only member to have negotiated such deals, including one with China's Heilongjiang Beldahuang State Farms Business Group in Río Negro and another with the Al-Khorayef Group from Saudi Arabia in El Chaco.

APA

Piñeiro, M., & Villarreal, F. (2012). Foreign Investment in Agriculture in MERCOSUR Member Countries. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/foreign_investment_mercosur.pdf

Chicago

Piñeiro, Martin, and Federico Villarreal. Foreign Investment in Agriculture in MERCOSUR Member Countries. International Institute for Sustainable Development, 2012. https://www.iisd.org/system/files/publications/foreign_investment_mercosur.pdf.

Wikipedia

{{cite report |last1=Piñeiro |first1=Martin |last2=Villarreal |first2=Federico |title=Foreign Investment in Agriculture in MERCOSUR Member Countries |publisher=International Institute for Sustainable Development |date=July 2012 |url=https://www.iisd.org/system/files/publications/foreign_investment_mercosur.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{pieiro2012foreign, author = {Piñeiro, Martin and Villarreal, Federico}, title = {{Foreign Investment in Agriculture in MERCOSUR Member Countries}}, institution = {International Institute for Sustainable Development}, year = {2012}, month = jul, url = {https://www.iisd.org/system/files/publications/foreign_investment_mercosur.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }