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[BUSINESS] · Brazil · 2 sources

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Family farms generate 40% of Rio Grande do Sul's agri GDP amid soy herbicide threat to vineyards

Family agriculture in Brazil's Rio Grande do Sul state accounts for roughly 40% of the state's agricultural gross domestic product, despite using only a quarter of the cultivated area. The sector includes about 365,000 small‑scale farms, produces roughly R$ 111 billion annually and dominates key chains such as 95% of the state's tobacco, 92% of its bananas and 83% of its milk. Soybeans generate the largest revenue at about R$ 9 billion, followed by chicken production at nearly R$ 8 billion. The sector faces demographic challenges as the average farmer ages and the share of young operators has fallen by 35%.

A separate study warns that the expansion of soy cultivation and the use of hormonal herbicides have contaminated vineyards in 45 municipalities, damaging around 4,000 ha – about 10% of the state's vineyard area – and causing estimated losses of R$ 350 million. Between 2018 and 2024, roughly 700 ha of vines were abandoned. New regulations aim to limit herbicides such as 2,4‑D, but the risk to the state's viticulture remains a significant concern.