“Brazil is the country of the future, and it always will be” is a common joke among foreigners here in Brazil’s frontier regions. It refers to the backward systems and illogical situations that most of us have to deal with daily. However, there is no doubt in anybody’s mind that when Brazil gets its infrastructure interlinked, from roads, railways and water transportation through the various large rivers and ports, that Brazil will be an even more unstoppable food/fiber/fuel-producing machine.
To understand all of the challenges outside of logistical problems that Brazil needs to overcome to become an ag powerhouse, let’s compare Brazil and the U.S.:
6) The U.S. legal system works. Contracts and documentation are guaranteed, and you can obtain title insurance, etc., on land you buy or rent. In Brazil you have a legal system that works for those with the most money and, until you can get to a federal level, the legal system is a joke.
7) U.S. banks lend money at reasonable interest rate, and will tie most of it to an operating loan. Brazil banks lend money for around 1.5-2%/month, and it’s basically impossible to get.
8) U.S. logistics are the best in the world; Brazil’s – well, let’s just say not so good…yet.
There are a lot of positive things going on in Brazil; they still have a long way to go in a lot of aspects, and they will need to continue to become more stable if the world ag superpowers are going to be able to produce nearly 70% more food than it does today to help feed a population that is expected to reach nearly 9 billion people by 2050.