Inversión Extranjera en Agricultura en los Países Miembros del MERCOSUR

This report analyzes foreign investment in agricultural land and production within the MERCOSUR member states (Argentina, Brazil, Paraguay, and Uruguay). It examines three investment models: state-to-state cooperation agreements, direct land purchases by private investors, and foreign direct investment in agricultural production (primarily through contract farming). The document highlights a general lack of robust data on foreign land ownership, though it notes significant regional trends, such as the expansion of Argentine agricultural firms into Brazil and Paraguay, and the high percentage of foreign-owned land in Paraguay. It also details the varying legislative responses of these nations to restrict foreign land acquisition to protect national sovereignty and food security.

• Foreign investment in agricultural land in MERCOSUR countries is characterized by a significant lack of reliable data, although available evidence indicates a substantial foreign presence. In Brazil, foreigners are estimated to own 1.7% of all arable land. In Argentina, private estimates suggest foreign ownership of 3.4% of arable land. Paraguay shows the highest level of foreign ownership, with 19.4% of the national territory owned by foreigners, more than half of whom are Brazilian.
• Argentina has implemented specific legislation (Law No. 26.737) to restrict foreign land ownership. This law defines 'foreign ownership' as individuals of foreign nationality or legal entities where more than 51% of the capital is foreign-owned. It establishes a 15% limit on total rural land ownership by foreigners nationwide and within provinces/municipalities, a 30% limit for persons of the same nationality, and a 1,000-hectare limit for a single foreign owner in the 'core zone'.
• Brazil was the first MERCOSUR country to restrict foreign land purchases, starting with Law No. 5.709 in 1971. While it maintains a national rural registry (SNCR) managed by INCRA, the effectiveness of its laws has been questioned due to poor data control. Proposed amendments seek to limit foreign ownership to 25% of a municipality's land, with no single foreign company owning more than 30% of that quota.
• In Uruguay, there are no current laws limiting foreign land purchases, although the government has discussed such measures. The country maintains a registry of transactions since 2000, but it only identifies individual foreign buyers, not foreign corporations. Informal reports suggest that 1.8 million hectares are owned by foreign corporations, with significant investments from Swedish (Stora Enso), Chilean (Arauco), and Finnish (Botnia) companies in the forestry sector.
• Paraguay has very few effective restrictions on foreign land acquisition, and there is little public or political debate on the issue. Most foreign land ownership is held by private Brazilian investors, particularly in departments bordering Brazil such as Alto Paraná, Canindeyú, Caaguazú, and Itapúa, focusing on soy and sugarcane production.
• Contract farming is a dominant model for foreign investment in agricultural production, particularly in Argentina. Large-scale 'sowing pools' (pools de siembra) often exceed 20,000 hectares and involve a complex structure of business organizers, landowners, contractors, financiers, and technical advisors. Approximately 50% of grain production in Argentina's Pampean zone is carried out under contract farming agreements.
• Argentine agricultural firms are highly active in the region, expanding their production into Brazil and Paraguay. Companies such as El Tejar, Los Grobo, and MSU are key players in soy cultivation. In Brazil, Argentine groups reportedly held over 700,000 planted hectares during the 2010–2011 harvest.
• Argentina has entered into specific state-level cooperation agreements with foreign governments. One agreement was signed between the province of Río Negro and China's Heilongjiang Beldahuang State Farms Business Group for an agro-food project and a port terminal. Another agreement was negotiated between the province of Chaco and the Al-Khorayef Group, linked to the Saudi Arabian government, involving an investment of $400 million for irrigated production in the 'El Impenetrable' region.

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} }