Brazilian agriculture developed significantly over the last decades, transforming Brazil in one of the World's major agricultural and livestock producer. Specifically, the Southern Region, object of this study, in 2006 accounted for approximately 28.8% of the value of agricultural production (IBGE, 2009). This significant participation (lower only than the Southeast region) can be explained by the presence of some of the largest agricultural supply chains in the region such as soybean and corn grains. This study's objective is to evaluate the Southern region's recent agricultural situation based on data from the 2006 Brazilian Agricultural Census. Based on this diagnosis, the study aims to identify limitations and discuss challenges to future agricultural development in the region. The study identified that regional agricultural production benefits from an overall better environment for the development of their activities compared to other Brazilian Regions. For this competitive edge to continue and possibly even increase, many investments are needed, such as improved transportation infrastructure.