North American agriculturalists, concerned about the possible reduction in agricultural subsidies in the United States, are buying cheap land in the Centre-West region of Brazil in a bid to remain competitive.

The land is located in Mato Grosso, Brazil''s largest soya producer.

A delegation from the American Soya Association visited the region recently to assess the region''s enormous agricultural potential.

The Governor of Mato Grosso, Blairo Maggi, is one of the world''s biggest soya producers. He told the delegation that only 5% of agricultural land in the state is currently being used. Maggi aims to develop 40% of the area, but this depends on substantial investment in transport infrastructure.

"There is a growing interest in the state among American producers", said Irlandino dos Santos Junior, marketing director of Advance Trading Brazil, which have an office in Rio Verde, Goias.

Some of the American agriculturalists have already moved to Mato Grosso. Douglas Ferrell bought 10,000 hectares in a forest area in the north of Mato Grosso three years ago. He is slowly clearing the land for soya cultivation. "This year we cleared 500 hectares and we will open up a further 500 hectares next year", said Ferrell. "The land is really cheap, but the infrastructure remains poor", he said. Land costs $ 20 per hectare in the north of Mato Grosso, compared with $300 in Goias and $1,215 in the United States.

Another American agriculturalist who has re-located to Mato Grosso said that "here people respect agriculturalists. We lost this respect a long time ago in the United States. There is nothing left for us in the [American] Mid-West".

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