mobilizing capital to scale responsible expansion of crop livestock in brazil

10 Cattle yields can be increased to three to five times their current levels, alleviating pressure on forested areas in the Amazon and Cerrado regions Enhancing productivity in existing cattle ranching operations alleviates pressure on forested areas. By improving the management of existing pasturelands, ranchers could significantly boost productivity and meet growing demand. Despite its potential, Brazil’s productivity lags behind compared to USA and many EU countries. Currently, 90% of Brazilian cattle operations underinvest in technology and management, causing new pastures to lose grazing productivity within three to four years. The combined use of different techniques can lead to an expressive increase in productivity, on top of promoting the “land sparing effect”. This concept refers the fact that an increase of production in already opened areas reduces the need of expanding production on native vegetation, an essential component of sustainable agriculture, biodiversity protection, GHG issuance reduction, and guarantee of world food security in the long-run. Inclusion of smallholders in this agenda is crucial, as they are among the most vulnerable and those who could benefit the most from significant revenue increase stemming from this increase in productivity. potential increase in cattle yields while maintaining a pasture-based system1 annual potential meat production in a well-managed pasture using proven techniques1 potential reduction in emissions per year vs the status quo (at the same production level)2 for animals to be raised to maturity - requirement of the rapidly growing market in China1 more nutrients compared to soil with low to moderate quality33-5x 400M mt CO2 13-25x180 kg/ha 30 months An opportunity exists to meet the agriculture demand without resorting to additional conversion by utilizing already cleared pastures in the Cerrado In Brazil, the expansion of the crop and livestock production - soy being one of the relevant crops in expansion - should primarily target low productivity pasturelands in the Cerrado biome. Unlike the Amazon biome, the Cerrado is not covered by market agreements like the Soy Moratorium and has fewer protections under the Brazilian Forest Code regarding native vegetation area stipulations. Furthermore, in the Amazon, there is an elevated risk that expanding agriculture over pasturelands could push cattle herds into native vegetation zones, intensifying conversion pressures. Below a few key figures: suitable degraded pasture for agriculture in Brazil4 faster to achieve peak soy yields when expansion occurs on pastureland instead of on recently-cleared native vegetation areas528 Mha 4-5 years 1. Finance for a Forest-Positive Future, 2022 – IFACC Report 2. IFACC Impact Case - Investing in Agricultural Expansion Through Pasture Recovery and Yield Improvements in Brazil 2023 3. Agricultural Expansion in the Brazilian Cerrado: Increased Soil and Nutrient Losses and Decreased Agricultural Productivity 4 Embrapa - Potential for agricultural expansion on degraded pasture lands in Brazil based on geospatial database 5.Incentives for Sustainable Soy in the Cerrado , 2019 – TNC report.