Inversión Extranjera en Agricultura en los Países Miembros del MERCOSUR

The report analyzes foreign investment in the agricultural sectors of MERCOSUR countries, identifying three primary models: state-to-state cooperation agreements, direct private land purchases, and foreign direct investment in production via contract farming. It highlights a general lack of robust data across the region, though it notes that foreigners own approximately 1.7% of Brazil's arable land and an estimated 3.4% of Argentina's. Paraguay shows the highest level of foreign ownership at 19.4% of its national territory, largely held by Brazilians. The document details the legislative shift toward restricting foreign land ownership in Argentina and Brazil, while noting that Uruguay is debating similar measures and Paraguay lacks significant public debate or effective restrictions. It concludes that while foreign investment can bring technology, it often risks displacing local producers and threatening food security if not properly regulated through clear definitions of foreign ownership and national land registries.

• Foreign investment in MERCOSUR agriculture follows three main models: cooperation agreements between states or state-owned enterprises, direct land purchase or long-term leases by the private sector, and foreign direct investment in production, often through contract farming.
• Data on foreign land ownership is inconsistent across the region; Brazil is the only country with a national land registry, estimating that foreigners own 1.7% of its arable land.
• In Argentina, private estimates suggest foreigners own 3.4% of all arable land, totaling over 5.8 million hectares, though the government lacks a formal cadastral registry.
• Paraguay has a very high percentage of foreign land ownership, with 19.4% of the national territory owned by foreigners, more than half of which is held by Brazilians.
• Uruguay's land market has seen significant turnover, with over half of the national territory changing hands in less than a decade, and a trend of individuals selling land to commercial corporations.
• Argentina passed Law No. 26.737 in 2011 to restrict foreign land ownership, establishing a 15% limit on total foreign ownership of rural land nationally and within provinces, and a 1,000-hectare limit in the core zone.
• Brazil has had restrictions on foreign land purchases since 1971 (Law No. 5.709), though implementation has been hindered by a lack of effective enforcement mechanisms.
• Contract farming is highly prevalent in Argentina, particularly in the grain sector (soy, corn, wheat, sunflower), with approximately 50% of grain production occurring under these agreements.
• Argentine agricultural firms, such as El Tejar, Los Grobo, and MSU, are highly active in Brazil, with some reports indicating they held over 700,000 planted hectares in Brazil during the 2010–2011 harvest.
• State-level cooperation agreements in Argentina include a deal between Río Negro and China's Heilongjiang Beldahuang State Farms Business Group, and negotiations between Chaco and a Saudi Arabian-linked firm.

APA

Piñeiro, M., & Villarreal, F. (2012). Inversión Extranjera en Agricultura en los Países Miembros del MERCOSUR. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/foreign_investment_mercosur_es.pdf

Chicago

Piñeiro, Martin, and Federico Villarreal. Inversión Extranjera en Agricultura en los Países Miembros del MERCOSUR. International Institute for Sustainable Development, 2012. https://www.iisd.org/system/files/publications/foreign_investment_mercosur_es.pdf.

Wikipedia

{{cite report |last1=Piñeiro |first1=Martin |last2=Villarreal |first2=Federico |title=Inversión Extranjera en Agricultura en los Países Miembros del MERCOSUR |publisher=International Institute for Sustainable Development |date=July 2012 |url=https://www.iisd.org/system/files/publications/foreign_investment_mercosur_es.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{pieiro2012inversin, author = {Piñeiro, Martin and Villarreal, Federico}, title = {{Inversión Extranjera en Agricultura en los Países Miembros del MERCOSUR}}, institution = {International Institute for Sustainable Development}, year = {2012}, month = jul, url = {https://www.iisd.org/system/files/publications/foreign_investment_mercosur_es.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }