During the 1960s and 1970s large government subsidies for cattle raising increased forest conversion. Since then, credit subsidies have been reduced, but subsidized public road construction continues, causing widespread deforestation. Land speculation is another reason why pasture expansion has continued in agricultural frontier areas. There is little evidence that technological progress in livestock production reduces deforestation. Nor is it clear that removing policies which discriminate against forest production would have a major positive effect in this regard.
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