Land and investment dynamics along Brazil's 'final' frontier: The financialization of the Matopiba at a political crossroads

The Cerrado biome has become a driving economic force in Brazil, gaining international attention as the newest and 'final' agriculture frontier of the largest South American country. Spanning 10 states and nearly 2 million square kilometers, the biome accounts for nearly a quarter of the country's national territory and more than half of its soy production. The Cerrado harbors the Matopiba plan, one of the most recent examples of state-led support directed towards the expansion of frontiers and the financialization of agriculture. Drawing on field-work (2016-2017), this article discusses land grabbing and the process of financialization in the Matopiba, a sub-region comprising one third of the area of the Cerrado. The processes analyzed herein are at once global in character and yet inevitably situated within the socio-political Brazilian context defined by the last three national administrations as well as the prospects offered by the current government, elected in 2022 and sworn into office in 2023. Considering the longstanding presence of capital in Brazilian agribusiness, the present study analyzes how foreign individuals have successfully leveraged knowledge of local land dynamics and positioned them-selves as intermediaries to institutional investors. As a result, these actors have in effect facilitated and fomented processes of financialization in the region. This shift towards financialization is considered within a current political and economic context that risks further accelerating the entrance of foreign and transnational capital into the Brazilian countryside, exacerbating existing conflicts surrounding land and territorial rights in the Cerrado.

Automated summary

The Cerrado biome in Brazil is now a major economic force and agricultural frontier, attracting global attention. This article focuses on the Matopiba sub-region within the Cerrado, discussing land grabbing and the process of financialization. Foreign individuals have played a role as intermediaries, leveraging their knowledge of local land dynamics to facilitate financialization in the region. This shift towards financialization poses risks and exacerbates conflicts around land and territorial rights in the Cerrado, especially with the entry of foreign and transnational capital into the Brazilian countryside.