Economic performance and economic impacts of adopting integrated Crop-Livestock-Forest systems in the Brazilian Amazon and Cerrado biomesIntegrated Crop-Livestock-Forest Systems: A path to improved agro-economic performance in the Brazilian Amazon and Cerrado

Julio Dos Reis^1,2*Mariana Yumi Takahashi Kamoi³Tarik Marques do Prado Tanure⁴Maisa Isabela Rodrigues⁵Josué Jean Daniel Etienne⁵Judson Ferreira Valentim⁶Mariana Aragão Pereira⁷Flavio de Jesus Wruck⁸

• ¹Brazilian Agricultural Research Corporation (EMBRAPA), Brasília, Brazil
• ²Embrapa Cerrados, Brasilia, Brazil
• ³External Consultant, Brasilia, Brazil
• ⁴Federal University of Uberlandia, Uberlândia, Minas Gerais, Brazil
• ⁵University of Brasilia, Brasilia, Distrito Federal, Brazil
• ⁶Embrapa Acre, Rio Branco, Brazil
• ⁷Embrapa Gado de Corte,Empresa Brasileira de Pesquisa Agropecuária (EMBRAPA), Mato Grosso do Sul, Brazil
• ⁸Embrapa Agrossilvipastoril, Sinop, Brazil

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 innovative 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 Whilefarming. 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 NationalBrazilian Low-Carbon Agriculture Plan.Moreover, the adoption of ICLFs positively impacts the production chain by creating additional jobs and enhancing both production and added value, thereby reinforcing public policies aimed at promoting sustainable agriculture and achieving the goals set forth in Brazil's Low Carbon Agricultural Plan.