Abstract
The adoption of sustainable agricultural systems in the Brazilian Cerrado and Amazon is globally relevant, on the one hand due to the amount of commodities produced in these regions, and on the other by the critically important ecosystem services provided by these biomes. We assessed the economic performance of an integrated crop-livestock and an integrated crop-livestock-forest system at farm level comparing their results with the most representative agricultural production systems used in the Cerrado and Amazon, as follows: (i) continuous large-scale crop rotation (soybean–corn), (ii) extensive livestock. Also, we analyzed economic and environmental impacts of integrated systems widespread adoption estimating the results for production volume, gross production value, balance of trade, land-sparing effect and CO2eq sequestration using scenario analysis. The results highlighted the great influence of commodity prices on large-scale crop system and on extensive livestock economic results, particularly, gross profit. In contrast, the integrated systems showed better economic long-term results (i.e. similar payback, even with major investment, and higher profitability index). Also, integrated systems showed lower sensitiveness from commodity prices fluctuation, illustrating their capacity for market risk reduction, and their remarkable potential to increase economy results at regional level. Environmental results demonstrated the integrated systems huge potential for reduce deforestation as well as mitigate CO2eq emissions from agricultural sector, crucial issues for meeting climate commitments and global sustainable development goals. These results are useful for policy-makers and decision-takers to compare alternative farming systems performance in a global hotspot for agricultural commodities production and pressure on natural forest, and can contribute to increase adoption of sustainable agricultural systems in the Brazilian agriculture-forest frontier.
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Notes
Additionally, it is noteworthy the indirect agriculture contribution for GHG emission regarding its association with the Land Use, Land-Use Change, and Forest (LULUCF). This sector represented 23.4% of Brazilian GHG emission in 2015 (SIRENE 2017).
For construction of the WACC, see the supplementary material.
2020 prices (1 USD = 5.15 REAIS). Conversion using exchange data from official Brazilian Government database provided by Research Institute of Economic Applied (IPEA): http://www.ipeadata.gov.br/Default.aspx. This exchange rate was applied in all monetary values presented in this paper.
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Acknowledgements
The authors thank Embrapa Agrossilvipastoril, the Mato Grosso Institute of Agricultural Economics (IMEA), the National Rural Learning Service – MT (SENAR-MT), and the Brazilian Federal Agency for Support and Evaluation of Graduate Education (CAPES, PDSE: 88881.189523/2018-01) for supporting and funding this research. We also thank all the colleagues and reviewers who provided important advice for improving the text. The remaining errors and limitations are the responsibility of the authors.
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JCDR: conceptualization, methodology, investigation, and writing of the original draft. MYTK: investigation and data curation. MM: investigation and data curation. FJW: review and editing. RDARR: review and editing. ALDFN: conceptualization, review and editing.
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dos Reis, J.C., Kamoi, M.Y.T., Michetti, M. et al. Economic and environmental impacts of integrated systems adoption in Brazilian agriculture-forest frontier. Agroforest Syst 97, 847–863 (2023). https://doi.org/10.1007/s10457-023-00831-5
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DOI: https://doi.org/10.1007/s10457-023-00831-5
Keywords
- Sustainable agricultural intensification
- Integrated systems
- Amazon
- Cerrado
- Economic viability
- Environmental impacts