Lula signs land law aimed at reforming Amazon

BRASILIA, (Reuters) – Brazilian President Luiz  Inacio Lula da Silva signed a law granting more than a million  people land titles in huge chunks of the Amazon, aiming to end  decades of legal chaos in the world’s largest rain forest.

As a concession to environmentalists, who strongly  criticized the law as legalizing land-grabbing and encouraging  deforestation, Lula late on Thursday vetoed articles of the  bill that would allow companies to take over land.

Over three decades, settlers, farmers and speculators have  occupied, stolen and sold state land they did not own, fueling  the destruction of about a fifth of the world’s largest rain  forest. Land titles are often nonexistent or fake.

The government says granting ownership to residents of  these areas will reduce illegal land trade and make it easier  to police the rain forest. It says the law will also benefit  impoverished peasants who were encouraged to settle the Amazon  during the 1964-1985 military dictatorship but were never  provided with legal support, public security or financial aid.

The new land owners, who will have to pay taxes and follow  environmental regulations, are expected to help environmental  regulators crack down on squatting and deforestation, as well  as fund better enforcement efforts in remote Amazon areas.

The law will likely hand over ownership for 166 million  acres (67.4 million hectares) in the Amazon, an area bigger  than France, to individuals who can prove they have been  occupying the public land since December 2004.

The distribution of plots will be based on good faith  affidavits by claimants that they occupy an area. Authorities  will not carry out on-site checks of such claims on plots under  990 acres (400 hectares).

Environmentalists, who often criticize Lula for siding with  development rather than conservation in the world’s largest  rain forest, say those are among the flaws in the bill that  make it ripe for abuse.

“It’s not just regulation that will avoid deforestation but  how you regulate,” said Paulo Barreto, a senior researcher at  the Imazon institute on Amazon conservation. “If you give land, subsidize and give discounts or long  payment periods it makes access very easy and encourages the  extensive use of land. It makes it easier to deforest a certain  area than to invest to raise productivity.”

To receive title for plots between 1,000 and 3,700 acres  (400 and 1,500 hectares), occupants will have to pay market  price for the land, which will be defined by the National Land  Reform Institute. Claimants can pay for the land in  installments of up to 20 years and can resell it within three  years.