FORMOSO DO ARAGUAIA, Brazil (AP) — On a vast river island in northern Brazil, a complex debate is unfolding over cattle ranching and environmental protection.

Last year, federal authorities ordered the removal of livestock from protected Indigenous territory on Bananal Island, the largest river island on the planet. Officials argued that the land is designated for Indigenous communities and conservation, and that herds owned by non-Indigenous ranchers were illegal and damaging local ecosystems.

To carry out the decision, cowboys rounded up and drove more than 100,000 head of cattle off the island when water levels dropped enough to allow crossings. Yet the operation created new hardships for Indigenous residents who had relied on income from leasing grazing areas to ranchers.

The situation highlights the difficulty of reconciling environmental protection, Indigenous rights and the influence of agribusiness, one of Brazil’s strongest economic forces. The country is the world’s leading beef exporter, producing roughly one-fifth of global supply and contributing about 6% to national GDP.

Deforestation is visible in the Txuiri village of the Javae Indigenous group on Bananal Island in Formoso do Araguaia, Tocantins state, Brazil, May 20, 2026. (AP Photo/Andre Penner)

Safeguarding Indigenous territories is widely regarded as one of the most effective strategies for slowing deforestation in the Amazon, the world’s largest rainforest and a crucial regulator of the global climate.

Brazil has recently reduced overall forest loss, but cattle ranching remains the primary driver. Forests are cleared on a large scale to create pastureland.

Tocantins state, where Bananal Island is located, ranked among the regions with the highest deforestation in 2025, according to land-use monitoring data. As forests disappear, biodiversity declines and carbon-absorbing trees are replaced by methane-emitting cattle, intensifying climate change.

Cattle brought benefits and conflicts to the island

Brazilian law bars commercial enterprises on Indigenous lands, permitting livestock only for subsistence purposes.

In reality, however, sections of Bananal Island were informally leased for decades. Ranchers typically paid village leaders about 15 reais (around $3) per animal each month — significantly less than the roughly 60 reais charged outside the territory.

With more than 100,000 cattle grazing there at its peak, leasing revenues could total 1.5 million reais (approximately $290,000) per month. Funds were distributed to chiefs, who then allocated portions to community associations.

Indigenous chief Cleiton Javae walks in the Txuiri village on Bananal Island in Formoso do Araguaia, Tocantins state, Brazil, May 21, 2026. (AP Photo/Andre Penner)

“Over the years, cattle have helped pay for many of our community’s needs,” said Cleiton Javae, chief of Txuiri village, citing expenses such as education, health care, transportation and cultural celebrations.

Still, some residents argue that profits were concentrated among leaders and did not reach the approximately 5,000 inhabitants spread across more than 40 villages.

“The law requires consultation and shared benefits,” said Leandro Milhomem, head of the federal environmental agency in Tocantins. “Instead, some chiefs had substantial resources while children in the same communities suffered from malnutrition.”

A woman from the Javae Indigenous group fishes in the Javae River on Bananal Island in Formoso do Araguaia, Tocantins state, Brazil, May 20, 2026. (AP Photo/Andre Penner)

Residents told the AP that ranch workers fenced off sections of the island and limited access to communal farming plots.

Leaders who favored agreements with ranchers say such cases were exceptions and argue that cattle have been unfairly blamed for broader governance failures. Even so, they acknowledge that the number of animals exceeded declared limits.

“The situation became unsustainable, and removing the herds was the only solution,” Javae said.

Community members maintain that the remaining livestock belong to Indigenous owners. However, in March authorities seized 550 cattle and issued 21 citations, according to official records. In one case, a ranch hand reportedly said he was instructed to claim the animals were Indigenous-owned to avoid penalties.

Cattle ranching caused soil acidification and fueled wildfires

Horses graze in the Txuiri village of the Javae Indigenous group on Bananal Island in Formoso do Araguaia, Tocantins state, Brazil, May 21, 2026. (AP Photo/Andre Penner)

Bananal Island lies between the Javae and Araguaia rivers, near the meeting point of Tocantins, Mato Grosso and Pará — states that lead Brazil in soy and cattle production.

When European settlers arrived in the late 18th century, they encountered Indigenous populations and abundant wild banana groves that inspired the island’s name.

The region remained relatively isolated until the mid-20th century, when it was designated a protected area. At the same time, authorities encouraged cattle ranching through lease arrangements with Indigenous communities.

While ranching generated income, it also deepened inequality and contributed to environmental degradation.

Environmental authorities report that grazing has led to soil acidification and increased wildfire risk, with investigations frequently tracing fires back to pasture zones. The use of fire to clear and renew grazing land has long been common practice.

Javae Indigenous youths play with bows and arrows in the Txuiri village on Bananal Island in Formoso do Araguaia, Tocantins state, Brazil, May 21, 2026. (AP Photo/Andre Penner)

Young members of the Javae Indigenous group gather fruit in the Txuiri village on Bananal Island in Formoso do Araguaia, Tocantins state, Brazil, May 21, 2026. (AP Photo/Andre Penner)

Three Indigenous peoples inhabit the island: the Javae, Karaja and Ava-Canoeiro. The Javae have historically maintained close relationships with non-Indigenous ranchers. Many outsiders married Indigenous women and settled there, gaining access to economic opportunities inside protected territory.

The blend of traditions is visible across the island. Brick homes stand beside thatched dwellings made of wood and straw. In Txuiri, children practice archery near a Protestant church. In Boa Esperanca village, an elder prepares a traditional turtle roast while watching cooking videos online.

Brazilian Indigenous people rethink economic models

The Javae are collaborating with a conservation nonprofit to design a land management strategy that reflects their social, environmental and economic priorities and identifies ways to achieve them.

In May, Javae leaders and other Indigenous representatives traveled to Roraima state to learn from the Macuxi people, who are often cited as an example of combining agriculture with strengthened territorial rights.

Beginning in the 1980s, Macuxi leaders invested in cattle as a way to reinforce claims to land threatened by farmers, miners and squatters. Their territory received official recognition in 2005.

A cowboy rides a motorcycle with his sons in Boa Esperanca village of the Javae Indigenous group on Bananal Island in Formoso do Araguaia, Tocantins state, Brazil, May 22, 2026. (AP Photo/Andre Penner)

Today, the Macuxi collectively manage around 45,000 head of cattle, according to Indigenous leaders in Roraima.

Their experience, like that of the peoples of Bananal Island, reflects a broader national discussion among Indigenous communities about how to combine economic development with environmental stewardship and the defense of territorial rights.

This debate extends beyond ranching. In February, a Brazilian Supreme Court justice ruled that the Cinta Larga people have the right to conduct mining activities within their own lands in parts of the Amazon.

Indigenous advocates argue that legal frameworks must protect territories while recognizing the diversity among Brazil’s 391 Indigenous groups.

“There is no single formula that fits every Indigenous land,” one leader said. “Each region and each people must develop solutions suited to their own reality.”