Beginning in the 1970’s the plateaus of Alto Jequitinhonha, northeast of Minas Gerais, until then areas of common use by family farmers, were planted with eucalyptus. This article analyzes the effects of reforestation on land occupation, comparing it with the areas of the family production. It is carried out in the homogenous micro-region of Capelinha, an area with the largest concentration of eucalyptus in the region. Secondary data from the IBGE Census for the years 1970, 1980, 1985 and 1996 were used, and also secondary data from surveys conducted around the region studied, including interviews with management of companies and union leadership. The article concludes that, in thirty years, the reforestation concentrated the land and created reduced employment. Family agriculture, on the other hand, had their areas of land compressed and overexploited due to the loss of the plateaus; however they remained as the main employment and income generator in the area.