Unlocking Sustainable Profitability: Economic Feasibility of Integrated Crop–Livestock–Forest Systems for Pasture Recovery in the Brazilian Cerrado
Abstract
:1. Introduction
2. Materials and Methods
2.1. Study Area and Integrated System Design
2.2. Financial Modeling and Credit Line Scenarios
3. Results
3.1. Financial Performance by Credit Line
3.2. Sensitivity Analysis
3.3. Impact of Producer Remuneration
4. Discussion
5. Conclusions
Author Contributions
Funding
Data Availability Statement
Acknowledgments
Conflicts of Interest
Abbreviations
AU | Adult animal unit |
B/C | Benefit–cost ratio |
BPE | Equivalent periodic benefit |
FAO | Food and agriculture organization |
IBGE | Instituto Brasileiro de Geografia e Estatística |
ILPF | Integrated crop–livestock–forest systems |
IRR | Internal rate of return |
MAPA | Ministério da Agricultura, Pecuária e Abastecimento |
MIRR | Modified internal rate of return |
PSA | Payments for environmental services |
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Activity | Category | Method/Unit | Cost (BRL) | Year | Total (BRL) |
---|---|---|---|---|---|
Baru production | Soil preparation | Harrowing (h) | 180.00 | 0 | 360.00 |
Fertilization (L) | 0.72 | 0 | 3600.00 | ||
Ant control (kg) | 45.00 | 0 | 225.00 | ||
Pest control (kg) | 15.00 | 0 | 37.50 | ||
Labor (day) | 100.00 | 0 | 500.00 | ||
Planting | Seedlings (unit) | 11.00 | 0 | 5500.00 | |
Seeds (kg) | 75.00 | 0 | 375.00 | ||
Inputs (L) | 26.30 | 0 | 657.50 | ||
Harvest | Manual (day) | 150.00 | 3 * | 4500.00 | |
Processing (day) | 150.00 | 3 * | 2250.00 | ||
Cattle production | Cattle inputs | Calf purchase (BRL) | 2641.50 | 2, 4, 6, 8, 10 | 7924.50 |
Mineral salt (bags) | 120.00 | 2 * | 480.00 | ||
Corn (kg) | 1.20 | 2 * | 1728.00 | ||
Açu grass (kg) | 0.30 | 2 * | 2016.00 | ||
Electric fence (ha) | 3534.95 | 0 | 7069.90 | ||
Water trough (unit) | 400.00 | 2 | 400.00 | ||
Anthelmintic (mL) | 1.50 | 2 * | 31.50 | ||
FMD vaccine (dose) | 2.00 | 2 * | 12.00 | ||
Rabies vaccine (dose) | 3.50 | 2 * | 10.50 | ||
Pasture maintenance | Limestone (t) | 83.33 | 2, 4, 6, 8, 10 | 333.33 | |
NPK fertilizer (bags) | 120.00 | 2 * | 480.00 | ||
Herbicide (L) | 70.00 | 2 * | 140.00 | ||
Mowing (ha) | 150.00 | 2 * | 300.00 |
Products | Production | Sale Price (BRL/m3) | ICMS | Net Revenue (BRL/Year) |
---|---|---|---|---|
Chestnuts (kg/year) | 30 | R$ 80.00 | 12% | R$ 2112.00 |
Roasted chestnuts (kg/year) | 30 | R$ 100.00 | 12% | R$ 2640.00 |
Shelled chestnuts (kg/year) | 30 | R$ 120.00 | 12% | R$ 3168.00 |
Cattle (@/cycle) | 91.89 | R$ 307.00 | 12% | R$ 24,825.00 |
Totals | R$ 607.00 | R$ 32,745.00 |
Credit Line | Max. Amount (R$) | Grace Period (Years) | Total Term (Years) | Interest Rate (% p.a.) |
---|---|---|---|---|
Pronaf Floresta | 100,000.00 | 12 | 20 | 3.00 |
Pronaf Agroecologia | 250,000.00 | 3 | 10 | 3.00 |
Pronaf Mulher | 250,000.00 | 3 | 10 | 8.00 |
Pronaf Agroindústria | 210,000.00 | 3 | 10 | 3.00 |
Pronaf Eco | 165,000.00 | 3 | 10 | 3.00 |
Pronamp Investimento | 600,000.00 | 2 | 8 | 6.00 |
Pronamp | 430,000.00 | 3 | 8 | 6.00 |
ABC Ambiental | 2,000,000.00 | 8 | 12 | 6.00 |
Self-financing (own funds) | – | 0 | – | – |
Indicator | Formula and Description |
---|---|
Net present value (NPV) [18] | |
Equivalent periodic benefit (EPB) [19] | |
Internal rate of return (IRR) [20] | |
Modified internal rate of return (MIRR) [21] | |
Payback period (PBP) [22] | |
Benefit–cost ratio (B/C) [22] | |
Economic profit (EP) [23,24] |
Credit Line | Financed (BRL) | NPV (BRL) | BPE (BRL) | TIR (%) | MTIR (%) | Payback (yrs) | B/C |
---|---|---|---|---|---|---|---|
ABC Ambiental | 343,930.43 | 97,462.41 | 13,652.18 | 35% | 27% | 17 | 1.24 |
Pronamp Inv. | 343,930.43 | 69,410.33 | 9722.74 | 37% | 32% | 18 | 1.22 |
Pronaf Agroec. | 250,000.00 | 59,414.78 | 8322.61 | 33% | 26% | 18 | 1.23 |
Pronaf Floresta | 100,000.00 | 49,195.32 | 6891.10 | 31% | 16% | 9 | 1.17 |
Pronaf Agroind. | 210,000.00 | 33,366.13 | 5137.15 | 29% | 23% | 21 | 1.17 |
Pronaf Eco | 165,000.00 | 26,821.12 | 3757.00 | 26% | 13% | 13 | 1.08 |
Pronamp | 343,930.43 | 2204.72 | 308.83 | 9% | 9% | 69 | 1.03 |
Self-financing | – | −4248.61 | −595.13 | 6% | 10% | 26 | 1.10 |
Pronaf Mulher | 250,000.00 | −28,804.09 | −4034.77 | #NÚM! | −100% | (none) | 0.94 |
Credit Line | NPV @ 6% p.a. | NPV @ 8% p.a. | NPV @ 10% p.a. |
---|---|---|---|
ABC Ambiental | 119,819.92 | 97,462.41 | 79,339.73 |
Pronamp Investimento | 81,514.98 | 69,410.33 | 59,012.93 |
Pronaf Agroecologia | 71,293.75 | 59,414.78 | 49,406.81 |
Pronaf Floresta | 58,054.16 | 49,195.32 | 41,335.50 |
Pronaf Agroindústria | 48,061.53 | 40,143.44 | 33,366.13 |
Pronaf Eco | 33,081.56 | 26,821.12 | 21,673.01 |
Pronamp (conventional) | 5662.56 | 2204.72 | −722.13 |
Self–financing | 1310.07 | −10,029.54 | −8456.38 |
Pronaf Mulher | −30,771.24 | −28,804.09 | −27,199.60 |
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Cunha, L.E.; Souza, Á.N.d.; Andrade, J.G.d.; Joaquim, M.S.; Lima, M.d.F.d.B.; Nunes, A.d.S.; Miguel, E.P.; Cruz, J.Á.F.; Barbosa, G.F.B.; Saraiva, C.d.S. Unlocking Sustainable Profitability: Economic Feasibility of Integrated Crop–Livestock–Forest Systems for Pasture Recovery in the Brazilian Cerrado. Forests 2025, 16, 978. https://doi.org/10.3390/f16060978
Cunha LE, Souza ÁNd, Andrade JGd, Joaquim MS, Lima MdFdB, Nunes AdS, Miguel EP, Cruz JÁF, Barbosa GFB, Saraiva CdS. Unlocking Sustainable Profitability: Economic Feasibility of Integrated Crop–Livestock–Forest Systems for Pasture Recovery in the Brazilian Cerrado. Forests. 2025; 16(6):978. https://doi.org/10.3390/f16060978
Chicago/Turabian StyleCunha, Laís Ernesto, Álvaro Nogueira de Souza, Juliana Gonçalves de Andrade, Maísa Santos Joaquim, Maria de Fátima de Brito Lima, Aline da Silva Nunes, Eder Pereira Miguel, Jainara Ávila França Cruz, Gabriel Farias Brito Barbosa, and Carolina da Silva Saraiva. 2025. "Unlocking Sustainable Profitability: Economic Feasibility of Integrated Crop–Livestock–Forest Systems for Pasture Recovery in the Brazilian Cerrado" Forests 16, no. 6: 978. https://doi.org/10.3390/f16060978
APA StyleCunha, L. E., Souza, Á. N. d., Andrade, J. G. d., Joaquim, M. S., Lima, M. d. F. d. B., Nunes, A. d. S., Miguel, E. P., Cruz, J. Á. F., Barbosa, G. F. B., & Saraiva, C. d. S. (2025). Unlocking Sustainable Profitability: Economic Feasibility of Integrated Crop–Livestock–Forest Systems for Pasture Recovery in the Brazilian Cerrado. Forests, 16(6), 978. https://doi.org/10.3390/f16060978