Agricultural Law 2026

BRAZIL Law and Practice Contributed by: Domicio dos Santos Neto, Frederico Favacho, Henrique Erbolato and Fernando Ferreira, Santos Neto Advogados

equivalent to foreign entities. Law No 5,709/1971 and Decree No 74,965/1974 form the principal framework under which foreign individuals and legal entities are subject to specific requirements, area limitations and, in certain circumstances, prior government authorisa- tion. The restrictions include limits on the aggregate area of rural land that may be acquired or leased by for- eign parties in each municipality, as well as restrictions based on nationality. Additional requirements apply, depending on the size and location of the property. Properties located in border areas or areas consid- ered essential to national security may require prior approval from the National Defence Council. The regime also extends to Brazilian legal entities controlled by foreign individuals or entities in the cir- cumstances established by Law No 5,709/1971. The distinction between foreign investment in agribusiness businesses and the direct or indirect acquisition or use of rural land is therefore important when structuring investments in the sector. The legal framework has also been the subject of significant recent judicial scrutiny. In April 2026, the Federal Supreme Court unanimously upheld the con- stitutionality of restrictions applicable to rural land acquisitions by Brazilian companies controlled by for- eign parties, and confirmed the federal government’s jurisdiction to authorise such transactions. Accordingly, foreign investors considering an invest- ment involving rural land should assess not only the ownership structure of the relevant Brazilian entity, but also the nature of the transaction, the location and size of the property, existing foreign ownership in the relevant municipality and any applicable authorisation requirements. 3.3 Environmental Requirements Forest Code and Rural Environmental Registry Agricultural operations in Brazil are subject to a broad environmental compliance framework covering: • native vegetation; • environmental regularisation; • water resources;

• environmental licensing; • pesticides; and • other aspects of natural resource use.

The principal framework for the protection of native vegetation is the Forest Code (Law No 12,651/2012), which establishes rules concerning Permanent Pres- ervation Areas, Legal Reserves, native vegetation and the Rural Environmental Registry ( Cadastro Ambiental Rural – CAR). Environmental Licensing The CAR is a mandatory public electronic registry for rural properties and possessions. It integrates envi- ronmental information for purposes of monitoring, planning, environmental regularisation and preven- tion of deforestation. It is also an essential element in assessing the environmental status of rural property. Environmental regularisation may involve the recovery or compensation of environmental liabilities relating to Permanent Preservation Areas, Legal Reserves and other protected areas. The applicable framework may also require adherence to a state-level Environmental Regularisation Programme ( Programa de Regulari- zação Ambiental – PRA) or the execution of commit- ments to remedy environmental deficits. Federal, state and local rules within the competen- cies established by Brazilian environmental legisla- tion regulate environmental licensing. A significant recent development was the enactment of Law No 15,190/2025, the General Environmental Licensing Law, which established general rules for the licensing of activities and undertakings that use environmental resources or are potentially polluting or capable of causing environmental degradation. The new framework contains specific provisions rele- vant to agricultural activities. Certain agricultural activ- ities (including the cultivation of agricultural species and extensive and semi-intensive livestock farming) may not be subject to environmental licensing when the statutory requirements relating to the regularity or environmental regularisation of the rural property are satisfied. This exemption does not eliminate oth- er environmental obligations, including requirements

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