Agricultural Growth in Brazil in the Period 1999-2004: Outburst of Soybeans and Livestock and its Impact on the Environment

Antônio Salazar Pessoa Brandão, Gervásio Castro de Rezende and Roberta Wanderley da Costa Marques

No 1103, Discussion Papers from Instituto de Pesquisa Econômica Aplicada - IPEA

Abstract: This paper analyses the Brazilian agricultural growth since January 1999, when a newexchange rate policy was adopted by the country. The analysis focuses on thebehavior of the exchange rate and international commodity prices throughout theperiod 1999-2004. It is also analysed the behavior of cropped area in this recentperiod, with the conclusion that there has been a fast increase in area planted withgrains in the agricultural years 2001/2002, 2002/2003 and 2003/2004, due almostentirely to the growth of soybeans area. The paper proposes that this expansion ofarea planted with soybeans was based preponderantly on the conversion of pastures.It is also suggested that expansion of soybeans should not be seen as antagonistic tothe environmental policy, specially in what respects the protection of the Amazonforest.

Pages: 30 pages
Date: 2005-07
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