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Prime Fazendas Rural Real Estate

Logistics··Prime Fazendas·1 min read

The Arco Norte corridor is changing land prices in Tocantins

Arco Norte ports shorten the route for soybeans and corn to reach export markets — and it already shows up in the per-hectare value of farms closest to the corridors.

The Arco Norte corridor is changing land prices in Tocantins
Illustrative image — Prime Fazendas archive

For decades, grain output from Brazil's Center-North depended almost entirely on the ports of Santos and Paranaguá in the South and Southeast — a truck haul of thousands of kilometers to the coast. The so-called Arco Norte (Northern Arc), formed by the ports of Itaqui (MA), Barcarena and Santarém (PA), among others, has flipped part of that logic by offering a much shorter route for producers in the Matopiba.

Why this matters to farm buyers

Freight is one of the largest variable costs in grain production, and distance to the export port is one of the factors that weighs most heavily on land pricing in a new agricultural frontier. Farms closer to the highways and waterways that feed the Arco Norte tend to operate with a more competitive freight margin than equivalent properties farther from these logistics corridors.

Tocantins' role on this map

Located on the natural route between the producing Center-West and the Northern ports, Tocantins benefits directly from the consolidation of this infrastructure — which helps explain why the state keeps attracting investors who buy land thinking not only about this year's harvest, but about the logistics of the coming decades. It's the same rationale behind the thesis we detail in Why invest in agribusiness.

What to evaluate before buying

Distance to a paved highway, access to the road network connecting to the Arco Norte, and the region's shipping track record are questions worth more than they seem when deciding between two properties with a similar price per hectare.

Prime Fazendas includes this kind of logistics analysis in the evaluation of every property in our portfolio, because freight isn't a detail — it's part of the math.

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