The Brazilian economy, which has been struggling for the past few years in the wake of a major, global recession, is expected to receive a major boost thanks to a surging farm industry.

As the largest nation in South America and the fifth largest nation in the world (by both geographical size and population), Brazil has long been a major regional economic power. However, in recent decades, thanks in part to its diverse array of natural resources, the Brazilian economy has been rapidly expanding. Brazil is currently the sixth largest economy in the world (behind only the United States, China, Japan, Germany, and France) and its economic development has been driven in large part by its agricultural sector.

This has been particularly true in the wake of the global recession that hit the Brazilian economy hard. As a major producer of soybeans, sugar, corn, and beef, the ag sector has been a vital part of the nation’s economy. While a brief contraction in agricultural growth and production took place earlier this year, Brazilian agriculture is likely to get a major boost as prices for soybeans and corn skyrocket in the wake of a devastating drought taking place in the United States.

The importance of agriculture to Brazil’s economy serves as an interesting point of comparison for the United States. Widespread investment in the Brazilian farm sector helped expand production and economic growth, even in the midst of a major economic crisis. In the U.S., however, despite the overall importance of the agricultural sector to the American economy, investments have been cut and spending is declining. More to the point, Congress is currently so dysfunctional that it cannot even pass a new farm bill and appears on track to leave farmers in limbo for the next year at least.

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Written by: Justin Ellison / Farm Plus Staff Writer