Economic viability of a crop-livestock integration system

Abstract

Crop monoculture and single conventional cattle raising were designed for a rapid increase in productivity and food supply. However, some of these production systems have shown signs of saturation and negative environmental impacts. Crop-livestock integration systems have been developed as an alternative that delivers increased productivity and greater environmental sustainability. This article presents an evaluation of the economic viability and the financial risk associated with an investment in crop-livestock integration with a focus on the production of beef cattle in São Carlos, SP, Brazil. Results showed that the investment is economically viable and has an Internal Rate of Return higher than that of a conventional system. Monte Carlo simulations showed that the integrated system presents lower market risks when compared to the conventional system.

Economic viability in the integrated crop-livestock system with nitrogen fertilization system and sward canopy heights

“…The MIRR is an improvement of the internal rate of return (IRR), as it eliminates the real problems of properties, return and return, as well as divergent financing and financing rates (Kassai et al, 1999) and indicates the internal rate of return and return over time (Brigham et al, 2001). Vinholis et al (2021) compared the economic viability of the ICLS in relation to livestock only and observed an NPV of R$ 2,782.69 per ha for the ICLS estimated for a MARR of 4.96% per year and annual IRR of 14%. The authors concluded that the ICLS has a higher NPV and IRR than just the use of livestock not integrated to cash crops, therefore greater economic attractiveness.…”

“…This entrepreneurial vision of the rural business, which does not depend on the size, is the differential of many properties, having difficulties in measuring costs and revenues. In the case of ICLS, there are many scientific reports on technical and productive feasibility, but few are those that address economic feasibility (Vinholis et al, 2021), which is one of the reasons that keep some farmers from joining the system. Different research groups in Brazil have been dedicated to investigating different lines of research related to the ICLS.…”

Grazing behavior, growth performance, carcass yield and economic analysis of steers supplemented with concentrate in an integrated crop-livestock system

“…Cattle production generated income from $ 76-100 and $ 70-95 per head and per hectare, respectively, justifying the implementation of "Santa Fé" ICL plus concentrate supplementation. The ICL can reduce financial risks, increase productivity, diversify production, and enhance the resiliency of the land (Kumar et al, 2019;Vinholis et al, 2021). The total income over variable and total costs, net income per hectare, ROI and profit margin were higher when concentrate intake was 0.47% of BW compared to lower supplementation levels.…”