Brazilian Agrarian and Development Laws: The Legal Framework of Brazilian Agribusiness and Its Financialization

Abstract This article aims to define agribusiness, indicate its legal bases and illustrate the financialization trend it is currently undergoing in Brazil. Agribusiness is understood as the integration between agriculture and industry, which results from government actions, among which, the formulation of a legal framework. Agribusiness is becoming increasingly financialized, largely due to the creation of new legal technologies that have been crucial toward enhancing this trend. The question this paper seeks to explore is: what role does Law play in the consolidation of agribusiness and its current state of financialization? Methodologically, we sought to define agribusiness. Subsequently, we contextualized the development of agribusiness in the broader landscape of the social and legal debates that took place in Brazil in the 1960s and 1970s. We then discussed the new legal instruments that have allowed for greater interaction between financial capital and agriculture. Finally, by analyzing data from sources such as the Ministry of Agriculture, Banco do Brasil and the Securities and Exchange Commission, we conclude that financialization is a strong trend in Brazilian agriculture. The trend is further supported by new agricultural legislation, which has promoted structural changes in the relationship between Brazilian agriculture and the financial market. As a result of these changes, credit for agribusiness tends to increasingly come from the financial market.