Integrated crop-livestock-forest systems: a path to improved agro-economic performance in the Brazilian Amazon and Cerrado

Diversified sustainable agricultural systems, such as integrated crop-livestock-forest systems (ICLFs), offer substantial potential for enhancing food production to meet the increasing global demand for agricultural goods while, simultaneously, conserving vital natural resources, including soil, water, and forests. However, a critical barrier to the widespread adoption of these sustainable systems in Brazil’s Amazon and Cerrado biomes, its primary agricultural commodity-producing regions, is the lack of comprehensive economic information. This paper presents case studies that evaluate the economic performance of ICLFs compared to traditional agricultural practices in these biomes (extensive livestock and large-scale cropping systems). Additionally, we employ an economic impact analysis using an input–output matrix approach to assess the economic benefits associated with ICLF adoption. The findings indicate that integrated systems exhibit superior economic performance, particularly over the long-term, as evidenced by more favorable viability indicators, such as higher internal rates of return and profitability indexes. In the Cerrado biome, the gross profit per hectare is up to USD 200 higher compared to traditional livestock and USD 26.5 higher than crop farming. While these systems necessitate higher initial investments per hectare, they provide shorter payback periods and increased profitability. Furthermore, it is observed that an ICLF expansion over degraded pasture in Brazil would promote highly positive economic impacts. Approximately 61,000 and 50,000 additional jobs would be generated in the Cerrado and Amazon biomes, respectively. In terms of production value, it would be up to USD 19.7 billion higher in the Cerrado biome and USD 16 billion higher in the Amazon biome compared to traditional livestock farming. These findings reinforce the role of public policies aimed at promoting sustainable agriculture and achieving the targets established in the Brazilian Low-Carbon Agriculture Plan.