The Brazilian government aims to invest US$120 billion for the revival of 40 million hectares of degraded grasslands over the next decade.
This initiative, introduced by the Ministry of Agriculture, Livestock, and Supply (MAPA), seeks to nearly double Brazil’s current 52 million hectares of cultivated area.
Funds raised through this program will be managed by the National Bank for Economic and Social Development (BNDES), tasked with securing foreign investments and channeling them to relevant financial institutions.
Private resources will also contribute to the program’s capital.
Investment bodies such as the Saudi Agricultural and Livestock Investment Company (Salic) have confirmed their participation.
Further, the United Arab Emirates’ Minister of International Cooperation has signaled the country’s desire to contribute to the program’s funding significantly.
The program’s objective is to provide financing at approximately 4% annual rates to producers, with a three-year grace period and a 12-year repayment timeframe.
The scheme is designed to achieve competitive interest rates, making it more appealing to stakeholders.
According to MAPA estimates, converting a hectare of grassland into arable land will cost US$3,000, factoring in machinery, environmental adjustments, financing, and soil correction.
Meanwhile, rehabilitating degraded grasslands to productive pastures with greater livestock capacity is estimated to cost US$1,000 per hectare.