This growth has been driven by higher net farm income, low-interest rates, and strong investor demand. Cropland has seen the highest appreciation, more than doubling in value from around $2,000 to over $4,000 per acre. The appreciation was highest in areas used for grain production, followed by sugarcane and coffee. Pasture land and planted forest land also experienced increases, albeit at a lower rate. The rise in land prices in Brazil correlates with the increase in soybean and corn prices in the country’s market. Notably, the southern states of Brazil, with their robust agriculture system and favorable soil quality, have land prices that stand out above the national average. Additionally, the state of Mato Grosso, known for its soybean and corn production, has seen a 200 percent increase in cropland prices. The state of Bahia in the northeast of Brazil, part of the Matopiba region considered the new agriculture frontier, has also experienced a significant surge in land value. However, the record valuations of farmland in Brazil are unlikely to be repeated in 2023 due to the low prices of corn and soybeans in the Brazilian market.
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