section_path: History/South America
section_name: South America
paragraph_text: South America
  
  The soybean first arrived in South America in Argentina in 1882.
  
  Andrew McClung showed in the early 1950s that with soil amendments the Cerrado region of Brazil would grow soybeans. In June 1973, when soybean futures markets mistakenly portended a major shortage, the Nixon administration imposed an embargo on soybean exports. It lasted only a week, but Japanese buyers felt that they could not rely on U.S. supplies, and the rival Brazilian soybean industry came into existence. This led Brazil to become the world's largest producer of soybeans in 2020, with 131 million tons.
  
  Industrial soy production in South America is characterized by wealthy management who live far away from the production site which they manage remotely. In Brazil, these managers depend heavily on advanced technology and machinery, and agronomic practices such as zero tillage, high pesticide use, and intense fertilization. One contributing factor is the increased attention on the Brazilian Cerrado in Bahia, Brazil by US farmers in the early 2000s. This was due to rising values of scarce farmland and high production costs in the US Midwest. There were many promotions of the Brazilian Cerrado by US farm producer magazines and market consultants who portrayed it as having cheap land with ideal production conditions, with infrastructure being the only thing it was lacking. These same magazines also presented Brazilian soy as inevitably out-competing American soy. Another draw to investing was the insider information about the climate and market in Brazil. A few dozen American farmers purchased varying amounts of land by a variety of means including finding investors and selling off land holdings. Many followed the ethanol company model and formed an LLC with investments from neighboring farmers, friends, and family while some turned to investment companies. Some soy farmers either liquidated their Brazilian assets or switched to remote management from the US to return to farming there and implement new farming and business practices to make their US farms more productive. Others planned to sell their now expensive Bahia land to buy land cheaper land in the frontier regions of Piauí or Tocantins to create more soybean farms.