Company overview

BrasilAgro buys underdeveloped or underused farmland, improves its infrastructure and farming methods, and produces crops and raises cattle. It operates owned and leased farms in Brazil, Paraguay and Bolivia, with Brazil supplying most revenue. Grains, led by soybeans, and sugarcane generate most operating revenue. Selling developed farms to property buyers is another central way it earns money from its land investments.

Agricultural buyers pay for its harvests. BrasilAgro sells all its soybeans to import/export companies in Brazil and has exclusive agreements to supply Brenco with sugarcane from specified farms. Sales depend heavily on a small customer group: a few buyers supply most revenue, and one customer accounts for most sugarcane revenue.

The business depends on buying land at workable prices, improving its productivity and finding buyers willing to pay more for developed farms. Commodity prices influence both farming income and land values, while farmland can be difficult to sell. Brazilian restrictions on foreign-controlled companies acquiring or leasing rural land may require official approval. Authorities are investigating whether BrasilAgro's acquisitions complied with those rules, which could restrict its land strategy.