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Low taxes on income derived from agriculture and tax rates that favor pasture over forest overvalues agriculture and pastureland and makes it profitable to convert natural forest for these purposes when it normally would no be so.
In addition, the system of property rights is also at fault. While large landowners lay claim to the most productive of Amazon floodplain soils, smaller farmers and squatters are forced to seeks out a marginal patch of land. Each squatter acquires the right (known as an usufruct right) to continue using a piece of land by living on a plot of unclaimed public land and "using" it for at least one year and a day...
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