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Investor Presentaiton

METHOD: HOW WAS THE EFFECT OF DEFORESTATION ISOLATED? To isolate the effect of deforestation on the price of land and agricultural products, the study employed new spatial and econometric modelling techniques, with the former generating the data necessary to analyse the latter. The method posits that the "deforestation effect" represents the increase in land stock and the consequent incorporation of land for agricultural and animal husbandry purposes. The econometric analysis was conducted at the municipal level, canvassing an 11-year period (2006-2017). 2006 2007 Econometric modelling Spatial modelling Land price Spatial estimation of land prices with data on coverage, agricultural aptitude and annual regionalised price bulletins (FNP) for the period spanning 2006 - 2017. Area prone to deforestation Analysis and spatial distribution of natural vegetation that is unprotected by environmental legislation. Deforestation rate Analysis and spatial distribution of deforestation data for the period spanning 2006 - 2017. Agricultural Inputs Tractors, staff, agricultural area. Agricultural products Rice, bananas, coffee, sugar cane, oranges, milk, corn and soybeans. Variables Access to technical guidance, internet access, storage, higher education, agricultural aptitude, concentration of establishments, average distance to ports and highways, deforestation, among others. 2008 2009 2010 2011 2012 Deforestation 2013 2014 For each year of the timeline, the necessary timeframe for the market to visibly show the estimated effects of deforested land being incorporated was considered (between 3 and 6 years). 2015 3 years 2016 Observation of 2017 the effect 6 years HOW DOES BRAZILIAN AGRIBUSINESS BENEFIT FROM DEFORESTATION? 11
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