Abstract
Chapter 1 explained the production and productivity gains achieved by Brazilian farmers since the 1970s. This chapter discusses the enabling conditions of such production and productivity gains, including natural resource availability, agricultural technology adapted to tropical conditions, and changes in agricultural policy. This chapter explains how public investments in agricultural research and development, rural credit, and price support in the 1970s and 1980s provided the necessary conditions for agricultural development in Brazil and how the liberalization of the Brazilian economy in the 1990s and the commodity boom of the 2000s provided strong economic incentives for agricultural entrepreneurs to bring new farmland into production and increase productivity with the use of modern technologies.
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