Even more agricultural borders in Brazil
Soybean planting in Brazil started in northern Rio Grande do Sul back in the early 70's and then a lot of farmers started to migrate to Paraná, Mato Grosso, Mato Grosso do Sul, and Goiás states seeking for bigger fields, as many of you may know. Two years ago a new process started, and I already mentioned at Marketing Talk. The flat lands of Rio Grande do Sul, also known as the pampas, started to replace rice fields and cattle areas with soybeans.
At that time, I did not think about migration. But yesterday I talked with a young farmer at a farm show that was looking for technologies and doing some test-drives with machinery. He was used to raise cattle with his family in a land of nearly 60 acres in northern Rio Grande do Sul. Last year, they sold their land and migrated to Jaguarão, right in the border with Uruguay. Guess what size? They grow 1,729 acres of soybeans in that area.
I can tell that if those pioneers are successful in the flat lands, a lot of farmers would buy more areas in the flat lands of Rio Grande do Sul. There is too much space in there and cheap fields. Of course, that would depend on the price of meat versus soybeans, demand for rice, and also the inflation of land.
Here is the draw I shared with you a while ago: