Brazil is considered a world leader in the production of ethanol derived from sugarcane. It is questioned the existence of agricultural land that can shelter the expansion of the culture, without causing greater damages for the environment and for the society. Thus, the main objective of this research was to project the impact of an increase in the demand for sugarcane destined for ethanol on land use and on food production in Brazil. The methodology used was computable general equilibrium, with the incorporation of a land use module and a conversion cost among the different soil types. The results suggest that in Brazil sugarcane expansion will occur at the expense of crop and pasture areas. The impact on deforestation and the impact on food prices would be relatively small. And such changes could be softened by productivity gains on land. Acknowledgement :