Unlocking Sustainable Profitability: Economic Feasibility of Integrated Crop–Livestock–Forest Systems for Pasture Recovery in the Brazilian Cerrado
2025
Laís Ernesto Cunha | 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 | Carolina da Silva Saraiva
Tropical pasture degradation represents a major challenge for global food security and environmental conservation, particularly in Brazil, where up to 60% of pastures are degraded. This study evaluates the economic viability of recovery of degraded pastures using an integrated crop&ndash:livestock&ndash:forest (ICLF) system. A representative 2-hectare system in the Brazilian Cerrado was analyzed, featuring native Dipteryx alata trees interplanted with pasture for cattle grazing. A deterministic financial model was developed to simulate annual cash flows over a 20-year period under various financing scenarios, including self-financing and multiple subsidized rural credit lines (e.g., Pronaf and Pronamp programs, and ABC Ambiental). The analysis shows that subsidized credit lines with low interest rates and extended grace periods significantly improve project profitability, yielding positive NPVs and robust internal rates of return, while self-financing and high-cost credit options (such as Pronaf Mulher) result in negative NPVs. The dual cash flow strategy&mdash:where borrowed funds are immediately invested in secure fixed-income instruments&mdash:further enhances economic performance. The findings demonstrate that ICLF-based pasture recovery is economically viable when supported by appropriate financing, offering a scalable model for sustainable agriculture that delivers both economic and environmental benefits.
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