Brazil is the second largest soybean export and third largest corn exporter. Its capital needs for infrastructure are huge, but the Brazilian government wants to place restriction on who can own land. There is a current ban on private investors buying large tracts of land. A new law is supposed to further restrict the buying of land by foreigners, especially Chinese who want to secure a source for soybeans. State-owned companies, SWF, and non-governmental organization would be banned while private transactions would be reviewed on a case by case basis.
It is important to control resources, but this type of restriction may cause capital to move elsewhere and limit the expansion of a key growing area. The result will be higher prices.
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