A farmers' lobby in Brazil is calling for the end of a two-decade-long agreement that prohibits grain traders from purchasing soybeans grown on deforested land in the Amazon rainforest. The lobby, Aprosoja-MT, based in the western Mato Grosso state, argues that the deal has created an unfair playing field for soybean farmers. The group claims that the agreement has fostered "a purchasing cartel," which has harmed those farmers who adhere strictly to Brazil's forest code.

Aprosoja-MT made a formal request to Brazil’s antitrust watchdog, CADE, asking for the termination of the "Amazon Soy Moratorium." This moratorium was adopted by global commodity giants such as ADM and Bunge in the mid-2000s, who pledged not to purchase soybeans from farms in the Amazon that had been deforested after 2008. The goal was to curb deforestation in the region, which has been a significant environmental concern due to its crucial role in absorbing greenhouse gases and mitigating climate change. Under Brazilian forestry regulations, Amazon landowners are allowed to clear up to 20% of their land, but concerns over a surge in deforestation in the early 2000s prompted global companies to take voluntary action to prevent further damage.

While scientists and environmentalists have lauded the moratorium for slowing deforestation rates, Aprosoja-MT contends that the agreement has disproportionately affected farmers who have complied with the forest code. The group claims that the moratorium has led to financial losses amounting to 20 billion reais ($3.3 billion) for the state of Mato Grosso. The farmers' lobby has been attempting to negotiate the end of the agreement for years, but with little success, which led them to file a complaint with CADE. The watchdog, which is already investigating potential market manipulation in relation to the moratorium, has not yet responded publicly.

In recent developments, Mato Grosso state lawmakers passed a law earlier this year that removed tax incentives from companies that continue to adhere to the moratorium. Aprosoja-MT has expressed its commitment to the families of farmers who have suffered financial hardships due to the agreement. The lobby group emphasizes that its priority is to support these farmers who have been affected for almost two decades.

Meanwhile, environmentalists have raised concerns that grain traders are seeking to weaken the moratorium, which has been pivotal in reducing Amazon deforestation. The Brazilian Association of Vegetable Oil Industries (Abiove) has confirmed it is in discussions about the future of the moratorium but has not provided further details.