Investor Presentaiton
CONCENTRATED BENEFITS
Lower land prices favour producers who
decide to expand agricultural and animal
husbandry production by increasing the
cultivated area. The data show that 93.5%
(5,218) of Brazilian municipalities suffered
a reduction in the price of their land due
to deforestation. However, despite the
general effect of land price depreciation, the
highest values observed are concentrated
in only a few municipalities and producers.
FIGURE 4. GROUPS OF MUNICIPALITIES THAT REPRESENT 25% OF THE TOTAL
EFFECT OF THE COUNTRY'S LAND DEPRECIATION, ORDERED IN RELATION
TO THE DEVALUATION OBSERVED IN THE LAND STOCK IN 2017.
GRAPH 4-12 MUNICIPALITIES WITH INCREASED DEVALUATION OF THE PRICE
OF LAND STOCK DUE TO DEFORESTATION IN 2017 (IN R$ MILLIONS).
The price per hectare of land in São Feliz do
Xingu (in the northern state of Pará) — the
municipality which demonstrated the highest rate of
depreciation ― was US$ 491.2 in 2017. Without the
deforestation that occurred in the years prior, the
price would have reached US$ 1310 per hectare.
São Félix do Xingu - PA
-12000
-10000
Land devaluation (in R$ millions).
Cáceres - MT
Altamira PA
Porto Velho - RO
Cocalinho - MT
Aripuanǎ - MT
São Desidério - BA
Brasnorte - MT
São Félix do Araguaia - MT
Poconé - MT
Juara - MT
Novo Repartimento - PA
-8000
-6000
-4000
-2000
0
Source: original survey results.
Figure 4 and Graph 5 show the municipalities
ranked with respect to the observed
depreciation in the value of their land
stock in 2017, due to the deforestation
that occurred between 2011 and 2014.
The municipalities were aggregated into
four groups that add up to 25% or 4 of
the total value depreciation effect.
Half (50%) of the country's total land
devaluation was concentrated in only
61 municipalities (1.15%). These are
municipalities concentrated in the "In
expansion" (54%) and "In transition"
(43%) classes, which registered 28% of
the deforestation rate from 2006 to 2017,
in relation to the deforestation rate across
the total of municipalities where land value
depreciated (G1 and G2 in Figure 4).
The other half of the depreciation (G3
and G4 in Figure 4) was distributed
across 5,157 municipalities, which are
predominantly located in municipalities
classified as "Consolidated" (45%)
and "In transition" (30%).
Group of municipalities
Number of
municipalities
12
49
G1 - maximum devaluation
G2
G3
G4 minimum devaluation
240
4917
354
No devaluation
Source: original survey results.
If we look at properties (Graphic 5, on the
next page), 50% of the land price depreciation
caused by deforestation is concentrated
in 109,852 (2.4%) establishments,
which represent 17% of the total area.
The effect is also concentrated in large
and medium establishments, which are
possibly those of commodity producers.
HOW DOES BRAZILIAN AGRIBUSINESS BENEFIT FROM DEFORESTATION?
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