Economic viability of an integrated crop-livestock system

Carlos Henrique Guimarães Coimbra, Ricardo de Assis Perina and Daiane Aparecida Fausto

Revista IPecege, 2014, vol. 1, issue 1

Abstract: Integrated Crop-Livestock Systems (ICLS), a production system that uses animal husbandry for meat, milk, or wool production, is another option for crop rotation. This type of system offers numerous benefits for both crops and animal production. Its importance from an environmental perspective is highlighted by the increased biological diversity in the soil-plant-animal-atmosphere environment, resulting in improved chemical, physical, and biological properties of the soil, as well as the preservation of water resources. The increased income diversification resulting from its use can reduce the risks inherent in the production system and generate economic security for rural producers regarding investments in production. National agricultural policy recognizes these benefits by promoting the agricultural and livestock practices it advocates, which receive support and financial resources from government entities. This case study aimed to demonstrate the economic return of an ICLS project using financing from the Low Carbon Agriculture Program. This work was developed on a traditionally agricultural rural property in Goioerê, Paraná State. The methodology employed was project analysis, using net present value and internal rate of return, before and after the implementation of the integrated crop-livestock system (ICLS). The integrated crop-livestock activity provided economic returns higher than the rates applied to the most conservative investments in the financial market, such as savings accounts, and environmental benefits have been observed since the first year of project implementation.

Keywords: Livestock; Production/Industries (search for similar items in EconPapers)
Date: 2014
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