Indirect land use change from ethanol production: the case of sugarcane expansion at the farm level on the Brazilian Cerrado

The expansion of sugarcane production in the Brazilian Cerrado has resulted in indirect land use change (ILUC), occurring when displaced land uses in one location are reallocated to another. Studies, however, usually identify ILUC at the regional or national level far from the original area of a displaced land use. This study examines the occurrence of ILUC due to sugarcane expansion for ethanol production at the farm level in the Brazilian Cerrado. It fills a gap in the literature by examining socioeconomic, policy and farm-level factors that influence ILUC at the farm level in the Brazilian Cerrado using face-to-face enumerated surveys. Results indicate that ILUC did occur at the farm (producer) scale and farmers who undertook ILUC intensified agricultural production on their farms. Results inform policymakers on how the intensification of agricultural practices may make it potentially difficult to keep protected lands out of production, reducing the environmental benefits from sugarcane-based biofuel production.