BRAZIL Law and Practice Contributed by: Domicio dos Santos Neto, Frederico Favacho, Henrique Erbolato and Fernando Ferreira, Santos Neto Advogados
of Environment and Renewable Natural Resources ( Instituto Brasileiro do Meio Ambiente e dos Recur- sos Naturais Renováveis – IBAMA) and state environ- mental agencies, depending on the activity and the applicable allocation of competencies. ANVISA has responsibilities relating to health and food safety, and participates in the regulatory framework applicable to pesticides, together with MAPA and the environmental authorities. CONAB, a public company linked to the Ministry of Agrarian Development and Family Farming, contributes to agricultural market intelligence, public stocks, food supply policies and price support mechanisms. The regulatory framework is therefore decentralised, and the relevant authority depends on the nature of the activity or transaction. This is particularly important for transactions involving multiple aspects of agribusi- ness, where financial, land, environmental, health and commercial regulations may apply simultaneously. 2.4 Interaction With Other Areas of Law Agribusiness is a complex activity, ranging from rural production to the marketing of products, involving issues such as rural property and land use, contracts, environmental legislation and labour relations. In this sense, agribusiness relates to different aspects of the law: • agrarian law is the legal basis for agribusiness, regulating rural property, land use, leasing and rural credit, among other matters; • environmental law regulates pollution control, the use of pesticides and sustainable agricultural practices; • tax law regulates taxation on rural production and the marketing of products; • civil and commercial law regulates the purchase and sale of inputs, agricultural products and the structuring of business involving contracts and commercial relations; • labour law regulates the rights and duties for rural workers; • intellectual property rights regulate the ownership of new cultivars, seeds and agricultural products; and
• international law regulates the international trade of agricultural products.
3. Land Ownership, Use and Environmental Compliance 3.1 Rural Land Use Regulation
Constitutional, agrarian, environmental and land use regulations govern the use of rural land in Brazil. The Brazilian Constitution recognises the social function of property as a fundamental principle applicable to rural property, and rural land is subject to require- ments relating to its productive use, compliance with applicable environmental rules and the observance of labour and other social obligations. Rural land use is also subject to specific restrictions arising from environmental legislation, including rules governing Permanent Preservation Areas ( Áreas de Preservação Permanente – APPs), Legal Reserves and the conversion of native vegetation to alternative land uses. The Brazilian Forest Code (Law No 12,651/2012) establishes minimum Legal Reserve requirements, which vary according to the location and characteris- tics of the property, including higher requirements for properties located in the Legal Amazon. Depending on the location and nature of the activity, state and municipal regulations can also affect the use of rural land. In addition, specific requirements may apply to the use of water resources, vegetation suppression, environmental licensing, pesticides, and activities conducted in protected or strategically rel- evant areas. Non-compliance with applicable requirements may result in administrative sanctions, civil liability and, in certain circumstances, criminal liability. Rural proper- ties may also be subject to expropriation for social interest where the constitutional requirements relating to the social function of property are not complied with. 3.2 Foreign Ownership Restrictions Brazilian law imposes restrictions on the acquisition and leasing of rural land by foreign individuals and entities, and by certain Brazilian entities deemed
15 AGRICULTURAL LAW 2026
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