Abstract:
THE UNITED STATES IS THE WORLD’S LEADING PRODUCER OF SOY. HOWEVER, MANY U.S. FARMERS
are shifting from soy to corn (maize) in order to qualify for generous government subsidies
intended to promote biofuel production (1); since 2006, U.S. corn production has risen 19%
while soy production has fallen by 15% (2). This in turn is helping to drive a major increase in
global soy prices (3), which have nearly doubled in the past 14 months.
The rising price for soy has important consequences for Amazonian forests and savannawoodlands
(4). In Brazil, the world’s second-leading soy producer, deforestation rates (5) and
especially fire incidence (6) have increased sharply in recent months in the main soy- and beefproducing
states in Amazonia (and not in states with little soy production). Although dry weather
is a contributing factor, these increases are widely attributed to rising soy and beef prices (5, 7), and
studies suggest a strong link between Amazonian
deforestation and soy demand (8, 9).
