February 25, 2021

By Matthew Kruse, CEO, Genesis Investimentos

Brazil’s agricultural economy has been on a rampage the last several years.  Strong exports and a weakening currency have made Brazilian grain some of the cheapest in the world. Brazil exports over two-thirds of its production, with China being the number one buyer. This has led Brazil to produce record breaking crops on a consistent basis. Typically, when a producer increases supply, market prices respond negatively.  Instead, just the opposite has happened. Not only has Brazil harvested several good crops the last couple of years, but they have record grain prices to go with it. This is allowing for profitable operating margins on some farms of up to 50 percent.  Due to record prices, Brazilian farmers have joked about how they will plant soybeans any place they can – including the flower vases!

With all the optimistic fervor going on in Brazil, it is important to maintain that growth while not compromising the environmental integrity of the region. There has been a lot of debate regarding production growth in Brazil and how it is, or is not connected to the rainforest. A lot of confusion still exists regarding what sustainable farmland practices really are, especially in Brazil. I have put together a white paper that I hope will help educate the reader on how Brazilian farmers are reconciling their growth while preserving the environment.

Access the white paper here.

About the Author:

Matthew Kruse is CEO of Genesis Investimentos, an asset management and advisory firm providing solutions for farmland investment in Brazil. He is a 5th generation farm manager who grew up on a farm near Royal, Iowa. Beginning in 2002, Mr. Kruse co-founded an investment company that purchased and operated farmland on the frontier of Brazil. As Chief Operational Officer, he lived and worked on-site in Brazil for nearly 14 years, overseeing production of approximately 22,000 acres of soybeans, corn, and cotton. He is fluent in Portuguese and has earned dual Brazilian citizenship. Mr. Kruse is actively engaged in production agriculture through his family farm in both Iowa, as well as in Brazil, producing soybeans, corn, coffee, and milk. He also manages an agricultural risk management firm providing brokerage services, market research, and crop insurance to clients throughout the United States. Mr. Kruse received two bachelor’s degrees from Iowa State University in Political Science and Communications. He earned his Executive MBA from Walden University. He has participated in The Executive Program for Agriculture Producers at Texas A&M. He is an Accredited Farmland Manager through ASFMRA. He holds Series 3, 30, and 31 licenses.

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