Black, you'll have to define 'long term'. If Brazil can develop rail lines to most regions it would be a minor problem to back haul lime (plentiful compared to fertilizers) and they use state of the art notill (which they are well acquainted already) I would question your conclusion. Or at least the time frame. I farm ground that was once considered, and still is by some no doubt, to be doomed because of erosion and acidity. Practices have changed and yields of small grains have increased steadily with no appreciable change in inputs and minor erosion. Yield increases in small grains can't be attributed to genetics in the fashion that corn and beans can.
As for corruption there are plenty of places in the world much worse than I know about and surprise, surprise, the socialists in Brazil have managed their economy pretty well as evidenced by the surge of the Real against other currencies the last 5-6 years. In fact, Brazilian farmers have that as a major complaint as it reduces their domestic income for commodities like soy in $$$.
But it is true that Brazil has some real disadvantages w/ soil quality and market access due to undeveloped infrastructure.
