Structural Changes and Dynamics of Brazilian Agriculture

The purpose of this chapter is to analyze the evolution of Brazilian agriculture, indicating that its expansion was not merely the result of the incorporation of new land and the growth of traditional tropical commodities. Domestic institutional changes and innovation in production have had a positive influence on competitiveness and productivity of Brazilian agriculture, allowing for diversification into a broader variety of products. Although the incorporation of new areas has played an important role in the recent evolution of agricultural production in Brazil, the reallocation of landland use and increased productivity were factors that are even more significant. Innovation has made it possible to occupy the agricultural frontier in areas previously considered inappropriate for agriculture, with bearable environmental effects.