Income Diversification through a Crop-Livestock-Forest Integration System in the Midwest Brazilian Region

Abstract

Sustainability on farms is a challenge to competitiveness in the globalized market. In this scenario, due to the strong environmental, economic and social appeal, crop-livestock-forest integration systems have been considered as the future of agriculture. Regarding the economic approach, this system is based on the diversification of income generating activities, with revenue entry at different times, rationalization of resource use and reduction of risk of financial losses. Thus, the purpose of this work was to carry out the economic analysis of a crop-livestock-forest integration system, located at Boa Vereda?s farm, in the municipality of Cachoeira Dourada in the state of Goias in the central-west region of Brazil. The system was composed of the following traditional crops of the region: soybean, corn, pasture, beef cattle and eucalyptus. The technical coefficients and the prices used for economic evaluation were obtained from the experimental unit and from the local market when crops were harvested in 2016/2017. The economic indicators used to assess economic viability were the net present value (NPV) and the equivalent annual uniform value (EAUV). The results showed a return greater than the opportunity cost of the land, showing the attractiveness of the crop-livestock-forest integration system. Thus, this system represents an economically viable alternative that, among other benefits, allows the diversification of its sources of income, with a reduction of risk.