Investment in public research and development has played a pivotal role in transforming Brazil’s agricultural sector. By allocating resources to scientific innovation, the country managed to turn previously unproductive tropical soils into fertile farmland. This transformation was largely driven by institutions such as Embrapa, which developed crop varieties suited to local conditions and introduced sustainable farming techniques. As a result, Brazil emerged as one of the world’s leading exporters of soybeans, beef, and coffee. The expansion of agricultural output did not come at the expense of environmental oversight; instead, advancements were paired with policies aimed at reducing deforestation and promoting land-use efficiency. Over the past three decades, productivity gains accounted for over 70 percent of the growth in Brazilian agriculture, highlighting the long-term impact of sustained public investment in innovation.
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Public R&D and Brazil’s agricultural revolution CEPR