AGROPECUÁRIA RONCADOR LTDA
&Green announced its first Brazilian and cattle sector transaction in June 2020. Agropecuária Roncador Ltda (Roncador) is a cattle and soy farmer operating on a farm of approximately 150,000 hectares in the State of Mato Grosso in Brazil. &Green has financed Roncador for the upscaling of its sustainable farming system that integrates crops (predominantly soy) with livestock ( ICL ) to their full farming operations. In addition, the project includes the recuperation of degraded pastures.
KEY PERFORMANCE INDICATORS
*In 2022, there was a fire that affected ca.800 of forest at the farm, resulting in the GHG emission rate higher than the sequestration rate.
&Green invests in projects that approach land management from a regenerative agriculture perspective. Regenerative agriculture broadly refers to the adoption of production practices that understand the availability of the land’s natural resources, increase biodiversity, prioritize soil health and fertility, sequester carbon, and reduce or eliminate the use of pesticides. The principle behind regenerative agriculture is to protect and restore ecosystems’ health, instead of depleting it, therefore contributing to combating climate change, which aligns well with &Green’s vision to transform tropical commodity supply chains.
Roncador’s production blueprint is a great example of how regenerative agriculture practices can be adopted in &Green’s investments.
At the core of the Roncador Landscape Protection Plan is the upscaling of an Integration Crop and Livestock (ICL) model: a form of mixed production that simultaneously utilizes part of the land for agriculture, namely soybeans and second-harvest maize, and part of the land for cattle, for the other (approximately) six months of the year. The overarching objective of the ICL model is to transition from monoculture (pasture) production to one that integrates components of different productive systems to achieve increasingly higher levels of product quality, environmental quality and competitiveness. ICL systems are a promising strategy to direct the expansion of pasture and crops towards already deforested areas and promote agricultural practices that can intensify production sustainably. By combining crop and livestock activities in the same area, farmers are able to increase fertility and organic matter in the soil. This favors biomass production and allows for higher stocking rates in pasturelands and higher productivity for grain cultivation. Such increase in the system’s total productivity represents a direct advantage for farmers if it can be translated into higher economic returns and soil conservation over the longer run.
WHAT ARE THE BENEFITS OF ICL?
Ecological & Environmental Benefits
Improved use of natural resources through synergy between animal and plant components;
Improved physical, chemical and biological properties of soil thanks to increase of organic matter;
Greater input efficiency;
Reduced agrochemicals use to control insect pests, diseases, and weeds;
Reduced pressure to clear and open new areas for agriculture;
GHG mitigation resulting from increased sequestration capacity;
Reduced erosion risk.
Economic and Social Benefits
Increased yield and production quality;
Increased annual food production at lower costs;
Reduced production seasonality;
Reduced variability of herd size, less outsourcing needs and reduced sensitivity to market cycle and market prices for procurement;
Increased competitiveness of animal product chains in national and international markets;
Diversified commercial activities;
Enhanced public image of farmers, linked to environmental awareness.
See how regenerative agriculture practices were adopted in the HSJ transaction.