Grasslands as the Missing Reserves

Written By Danilo Leao

Redefining Reserves in a Changing World

Traditionally, reserves such as gold and, more recently, Bitcoin have been regarded as stores of value, held by individuals and nations alike as hedges against uncertainty.

Gold, a tangible asset mined from the earth, and Bitcoin, a digital asset emerging from decentralized blockchain technology, have captivated the world's imagination as symbols of stability and speculation. However, an often-overlooked reserve is the land beneath our feet—an enduring, intrinsic asset that has underpinned human survival and economic growth for millennia.

In this chapter, we argue for the re-evaluation of land reserves, particularly in key regions like the United States, Brazil, China, and Europe. By examining their agricultural value and their emerging potential as carbon sinks, we can position land as a modern reserve that rivals, and in some cases surpasses, the significance of Bitcoin and gold.

Grasslands as the Missing Reserves

Grasslands, often misunderstood as mere grazing lands, are dynamic and regenerative assets. When viewed through the lens of carbon sequestration, biodiversity conservation, and sustainable agriculture, grasslands rival traditional reserves in value and strategic importance.

Rethinking Reserves: The Case for Grasslands

Scholars like Michael Hudson (Super Imperialism) and Barry Eichengreen (Exorbitant Privilege) have analyzed the role of currency reserves in global power dynamics, while Peter Bernstein (The Power of Gold) documented gold’s enduring allure. However, the conversation has largely ignored the potential of natural reserves—particularly grasslands—as renewable, scalable assets.

Grasslands provide:

  • Monetary Value: Derived from their market price and enhanced by carbon credit revenue.

  • Ecological Stability: Through carbon sequestration, biodiversity conservation, and soil health.

  • Economic Resilience: By supporting food security and offering financial incentives via carbon markets.

Quantifying the Value of Grasslands

1. Monetary Value

Using the average price per hectare:

  • United States: $3,706–$4,942 per hectare

  • Brazil: $1,973–$2,959 per hectare

  • China: $7,413–$12,355 per hectare

  • Europe: $1,853 per hectare

For 100,000 hectares (247,100 acres), this translates to:

  • US: $432.4M

  • Brazil: $247.1M

  • China: $988.4M

  • Europe: $185.3M

2. Carbon Sequestration Potential

  • Sequestration Rate: 8 tons CO₂ per hectare annually

  • Carbon Credit Value at $50/ton:

  • Revenue per hectare: $400

  • Revenue for 100,000 hectares: $98.8M

Land Reserves vs. Gold and Bitcoin

United States

  • Gold Reserves: Valued at approximately $500 billion.

  • Bitcoin Holdings: The U.S. is a hub for Bitcoin mining, with significant institutional and private holdings.

  • Land Reserves: U.S. agricultural land alone is valued at over $2 trillion, dwarfing the value of gold and Bitcoin combined. When factoring in grasslands, forests, and urban lands, the total reserve value is in the tens of trillions of dollars.

Brazil

  • Gold Reserves: Valued at around $5 billion.

  • Bitcoin Holdings: Growing adoption, but institutional holdings are still in their infancy.

  • Land Reserves: Brazil's agricultural lands and the Amazon rainforest are valued in the trillions. Grasslands add significant value through their affordability and carbon sequestration potential.

China

  • Gold Reserves: Valued at approximately $120 billion.

  • Bitcoin Holdings: Despite restrictions, China's influence persists through private holders.

  • Land Reserves: With tens of trillions in value, China’s land reserves surpass gold reserves in scale and economic contribution.

Europe

  • Gold Reserves: Valued at over $500 billion collectively.

  • Bitcoin Holdings: Slower adoption, with growing private and institutional interest.

  • Land Reserves: Europe’s mix of agricultural, forest, and protected lands balances economic and environmental value.

Grasslands vs. Traditional Reserves

Gold

Gold is finite and lacks regenerative capacity. Grasslands, in contrast:

  • Generate annual revenue through carbon credits.

  • Provide ecosystem services like biodiversity and water regulation.

Currency Reserves

Currency reserves stabilize short-term economic conditions, while grasslands:

  • Offer long-term stability through ecological resilience.

  • Provide renewable financial returns via carbon markets.

Bitcoin

Bitcoin, while innovative, has significant environmental costs. Grasslands:

  • Offset emissions by sequestering carbon.

  • Offer tangible, recurring value tied to ecological and economic benefits.

Grasslands as the Reserve of the Future

Gold and Bitcoin have served as symbols of stability and innovation, respectively.

However, the tangible, productive, and regenerative nature of land reserves—particularly grasslands—positions them as unique and essential assets for the future. Grasslands not only rival these traditional reserves in value but surpass them in ecological and economic benefits.

Through the "Teal Revolution," grasslands are reimagined as active contributors to a regenerative economy.

Their value grows with stewardship, offering nations a pathway to sustainable growth and climate resilience.

Danilo Leao
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Value of Land Reserves in the Global Economy