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Brazil is the world’s largest sugarcane producer, and its production is concentrated in south-central and northeast regions, particularly in the state of São Paulo. The land use change, principally from the increasing sugarcane production, may reflect in the farmland prices. The aim of this study is to evaluate the extent to which agricultural land prices in São Paulo are determined by variations in cultivation and prices of three products that represent a significant share of agriculture in the state: sugarcane, soy and corn, in a low-inflation environment.

Sugarcane expansion and farmland prices in São Paulo State, Brazil