Investor Presentaiton
TERRITORIAL CLASSIFICATION SYSTEM
ACCORDING TO LAND USE DYNAMICS
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FIGURE 2 - SPATIAL RESULT OF TERRITORIAL CLASSIFICATION SYSTEM
Considering the breadth of Brazilian territorial
diversity, a municipal classification system
was defined on a national scale and according
to the development stage of the agriculture
and animal husbandry market and the local
land market. This classification considered:
→ the evolution of the municipality's
total surface area allocated to agriculture
and animal husbandry - the variation of
the area used for agriculture and animal
husbandry between 2006 and 2017;
→ the remaining area of native vegetation -
the proportion of native vegetation, including
legal nature reserves and permanent
preservation areas, in relation to the area used
for agriculture and animal husbandry in 2017;
→ productivity - the ratio between
agriculture and animal husbandry's
gross production value and the total area
allocated for these purposes in 2017;
→ the transition from pasture to crops
- the reduction of pasture areas and
the expansion of agricultural areas;
→ the condition of available
infrastructure - the percentage of
establishments with access to electricity.
In expansion
In transition
Stagnated
Consolidated
In crisis
Municipal class
Definition
In expansion
Municipalities demonstrating a considerable expansion in their total
surface area allocated to agribusiness, with significant remaining
native vegetation or lower levels of native vegetation, but whose
agribusiness productivity levels remain low.
MOST MUNICIPALITIES WITH
AN EXPANDED AGRIBUSINESS
AREA ARE FOUND IN THE LEGAL
AMAZON OR MATOPIBA.
Source: original
research results.
In transition
Stagnated
Consolidated
In crisis
Municipalities with moderate remaining native vegetation and
moderate to high agribusiness productivity levels.
Municipalities with a stable or decreasing total surface area allocated
to agribusiness, and with significant remaining native vegetation.
Municipalities with a stable or decreasing total surface area
allocated to agribusiness, and with little remaining native vegetation
and high agribusiness productivity levels.
Municipalities with a stable or decreasing total surface area
allocated to agribusiness, little remaining native vegetation and low
agribusiness productivity levels.
DEFORESTATION AND LAND PRICE DEPRECIATION
The deforestation that occurred in
Brazil from 2011 to 2014 reduced
the value of land stock in 2017
by 5%, compared to what would
have been obtained in the absence
of deforestation. This percentage
represents US$ 27.1 billion, or an
average price reduction of US$ 77.57
per hectare.
The depreciation rate reached
25% of the value of land stock in
municipalities where the agricultural
frontier expanded - an amount
equivalent to US$ 16.5 billion, or an
average price reduction of US$ 195
per hectar.
4 The Legal Amazon comprises the states of Rondônia, Acre, Amazonas, Roraima, Pará, Amapá, Tocantins, Mato Grosso and part of the
state of Maranhão (west of the 44th meridian), as indicated in Article 2 of Complementary Law No. 124 of 3 January 2007.
HOW DOES BRAZILIAN AGRIBUSINESS BENEFIT FROM DEFORESTATION?View entire presentation