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Subsidies for a Cattle Ranching Intensification Subprogram in Acre: A State Analysis

Technical report

The main objective of this technical report is to provide background information for Acre’s Incentive Program for Environmental Services (SISA) concerning the cattle ranching intensification subprogram. Here, we present a variety of cattle ranching intensification scenarios using different herd expansion rates, percentages of pasture area to be intensified and economic data to demonstrate the difference in income from these scenarios. This analysis uses the rate of increase in herd projections from the federal government, as well as a more ambitious projection. The scenarios also consider four different intensification scenarios that would allow herd expansion, without incurring in new deforestation. These data are used in conjunction with economic data (production cost, beef price scenarios and income) to analyze the overall income of cattle ranching in Acre from 2010 to 2021. While intensification can be profitable, it must be linked to public policies and access to credit, so that the increase in income does not become a threat, possibly causing new deforestation.

Intensive Cattle Ranching: A New Model for Production in the Amazon

This video presents the work done in partnership with Acre. The video shows two cases of success in Acre, as well as some of the bottlenecks for intensification. The video also shows that intensification is beneficial from an economic and environmental standpoint.

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