Forests can influence local and regional weather and climate by various mechanisms. The importance of forests as a key regulator of moisture circulation has been shown by many studies. The Amazon rainforest is the lifeline for the conservation of the biodiversity of the region. However, since the last three decades, the deforestation trend in the region has increased. The local governments have passed legislation against illegal deforestation, specifically, the local governments of Mato Grasso state of Brazil have been the most vocal against the deforestation practices in its central and southern states. With cropping and animal grazing being one of the biggest reasons towards the clearing of the rainforest, often in response to growing global food demand, this research focused on a study to understand how the regional water balance and agricultural (soybean) induced land cover change in the region are interlinked. Soybean cultivation in the region is used as a proxy for the food demand in the water-food nexus.