Brazil Seeks USD2bn in Funding to Restore Degraded Pastures

Brazil is currently in discussions with international investors to secure BRL10bn (USD2bn) in funding within this year for recovering degraded pastures, as reported by Bloomberg on October 25. Potential investors include Saudi Arabia’s state-owned fund Saudi Agricultural and Livestock Investment. The purpose of this funding is to provide loans to farmers for recovering degraded pastures. This initiative aligns with Brazil’s ambitious goal of reclaiming 40 million hectares of degraded pasturelands within the next ten years. According to data from the Brazilian Agricultural Research Corporation (Embrapa), out of the nearly 152 million hectares of pastureland in Brazil, approximately 34 million hectares are severely degraded, and an additional 63 million hectares are of intermediate quality. Only 55 million hectares are currently in good productive condition.

The degradation of pastures has been exacerbated by factors such as grain monocultures, extensive livestock farming, and the increasing frequency of extreme weather events linked to climate change. The restoration of degraded pastures stands as a key environmental objective for President Luiz Inácio Lula da Silva. In April, President Lula emphasized that investments in pasture restoration could potentially double agricultural productivity without negatively impacting Indigenous populations and forests. To support this vision, Brazil’s agriculture ministry presented a fundraising program for pasture recovery in August to various government agencies, investment banks, and funds in countries like Japan, South Korea, Saudi Arabia, and the UAE. The program aims to raise USD120bn for the restoration of 40 million hectares of degraded pastureland over the next decade. Successful implementation of this initiative is anticipated to double Brazil’s food production area, which presently stands at 52 million hectares.

Sources:

https://www.bloomberg.com/news/articles/2023-10-24/brazil-is-in-talks-for-2-billion-in-funding-to-boost-crop-land#xj4y7vzkg

https://www.reuters.com/business/environment/brazil-official-defends-progress-protecting-forests-blasts-eu-ban-2023-08-07/

https://valorinternational.globo.com/agribusiness/news/2023/08/03/brazil-seeks-partners-to-recover-degraded-pasturelands.ghtml

https://dialogochino.net/en/agriculture/378612-brazil-looks-to-boost-recovery-of-degraded-land/

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