Abstract

This work analyzes the economic and financial viability of eucalyptus grown in an extensive beef cattle system, aimed at producing store cattle in feedlot conditions In this study, the strategy of annually forming eucalyptus stands in the pasture area provided the cattle production system with a cash flow higher than that of the forestless system, as of the sixth year. From the twelfth year on, farmers can finance their reforestation using their own resources — if they find it financially interesting—, although the conditions offered by the ABC programme are very attractive in terms of interest rate and grace period for amortizing the loan. It is concluded, therefore, that livestock-forest integration is attractive for extensive beef farms, provided that wood market prices enable the enterprise. The annualized-per-hectare net present values for the extensive system with and without forest were, respectively, R$197.92 and R$121.06.

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