In Brazil's Legal Amazon, over half of the deforestation in the last 30 years was caused by private landholders. This study analyzed the decisions of almost 500,000 landholders using detailed geospatial data from 1990 to 2022. The study used a structural econometric model to analyze the impact of past conservation efforts and municipal-level factors on current and future land use decisions. The findings highlight the importance of factors such as property size, pasture quality, environmental fines, and land conflicts in policy compliance. The study recommends specific "payment for ecosystem services" and "carbon taxes" tailored to real-world land use constraints, emphasizing the need for effective conservation policies that align with the Forest Code and broader environmental goals.