Poupa-Terra Effect: is productivity the key to the environmental sustainability of Brazilian agriculture?

Since the 1960s, Brazil has gone from being a food importer to one of the world's largest agricultural powers, exporting to more than 200 countries. This transformation is due to the expansion of cultivated areas (mainly in the Cerrado) and significant advances in productivity. Specifically, since the 1980s, the country has stood out for its significant improvement in Total Factor Productivity (TFP) of agriculture, which measures how much resources are effectively transformed into agricultural products, reflecting a more efficient use of land, labor and capital.

In this context, advances in the Brazilian agricultural sector can be analyzed from the perspective of the "land-saving effect"¹, a concept that highlights how improvements in the efficiency of cultivated areas have reduced the need to expand agricultural land. This phenomenon reflects a significant increase in production capacity without the need to convert more natural ecosystems into cropland.

The land-sparing effect estimate is a metric that compares land use across different agricultural practices to illustrate how adopting more productive and efficient techniques can reduce the need for land expansion. Specifically, this estimate assesses the amount of land that would be required if less efficient agricultural practices were used, in contrast to the space occupied by using more advanced and productive methods (see “Exhibit” for more detailed information on this estimate). Therefore, the land-sparing effect highlights not only the improvement in resource use through the adoption of more efficient agricultural technologies and practices, but also highlights the conservation of natural areas that could be converted to agricultural land.

Estimates made by Insper Agro Global, adopting the methodology presented by Vieira-Filho (2018), showed that if the technology and productivity level of 1997 remained constant until 2022, an additional 19 million hectares of agricultural crops would be needed to achieve the recorded production volume – equivalent to twice the area of ​​Portugal. Over this period, Brazil recorded consecutive grain production records and stood out in exports, becoming the world leader in several important commodities, such as soybeans, coffee, orange juice and sugar, in addition to having a large share in corn and cotton.

In the case of livestock farming, the land-saving effect was even more significant. Estimates made by Insper Agro Global showed that, from 1997 to 2022, there was a saving of 205,5 million hectares of pastureland. Embrapa also projects growth in this land-use saving, suggesting the possibility of doubling beef production in the coming decades, without the need to expand the areas dedicated to this activity. 

Since 2004, Brazil has stood out as the global leader in beef production, maintaining this position even with approximately 80% of production destined for the domestic market. Between 1997 and 2022, there was a significant increase of 101% in annual slaughter, rising from approximately 15 million in 1997 to 30 million head in 2022. This increase was accompanied by a 19% increase in total carcass weight, reaching 267 kilos in 2022, compared to 228 kilos recorded in the early 2000s. 

In contrast to this significant growth in cattle production, the rate of increase in pasture area was much lower, reaching 177 million hectares in 2022, compared to around 160 million in 1997, according to LAPIG/UFG. These significant productivity gains in Brazilian livestock farming have driven the growth of the sector, revealing a growing efficiency that requires less and less expansion into new areas.

Over the last decade, the Brazilian agricultural sector has optimized resources throughout its production chains. To achieve the volume of agricultural production observed in 2022, an additional 224 million hectares would be needed (the sum of the land-saving effect of Brazilian agriculture and cattle farming). This hypothetical increase would cover an area equivalent to the total sum of the territories of Spain, France, Germany, Sweden and Finland, illustrating the significant impact of technological and management improvements on national agriculture and livestock farming.

To achieve these land-saving results, the Brazilian agricultural sector has adopted a series of technologies and policies that have contributed significantly to the land-saving effect and increased productivity observed in recent decades. These initiatives include the development of crops adapted to local conditions, the implementation of multiple annual harvests, and the integration of practices such as Integrated Crop-Livestock-Forestry (ICLF), the Direct Planting System (NTS), Biological Nitrogen Fixation (BNF) and precision agriculture.

Furthermore, the contribution of research, programs and government tools, such as PronaSolos and Zoning Agrícola de Risco Climático (Zarc), have been fundamental to saving land. Significant contributions also come from genetic improvement, management and nutrition, which optimize the efficiency of animal performance, stocking rates and the use of pasture areas.

Amid global climate challenges and growing demand for food, adopting sustainable technologies and seeking a land-saving effect becomes crucial. Public policies such as the ABC Plan and Renovagro are vital, as they offer subsidized credit to those who adopt sustainable practices, in addition to encouraging investment in production. Institutions such as Embrapa, which lead research in agricultural technologies, and rural extension policies such as ATER, are essential to disseminate these practices among producers. In addition, market mechanisms, such as certifications and the carbon market, have the potential to reward and incentivize farmers to adopt efficient technologies.

The estimated indicators reveal that the land-saving effect is gaining significant momentum in Brazil. To sustain and expand this growth, it is essential that the right stimuli are applied, including appropriate public policies and market incentives. Thus, by solidifying such actions, Brazil not only advances in its journey towards agricultural sustainability, but also serves as an international model, demonstrating that it is possible to achieve economic growth together with environmental preservation.

1 Technical note: Estimation of the “land-saving effect”

The estimate of the “land-saving effect” was calculated in this study following the methodology proposed in Vieira-Filho (2018), which uses Martha-Jr, Alves and Contini (2012) as a reference. It is understood that estimating the effect of a technological change over time is not trivial. However, the calculation of the “Land-Saving Effect” evaluates this in a simple way, with a temporal comparison, in which the transformations are evaluated over time with variables such as production (in units of weight), the amount of land used (in units of area) and productivity (in weight per area). The area that would be used in a situation in which technological advance remains constant is then calculated (Vieira-Filho, 2018). 

Where: EPT is the Land Saving Effect, Pj is the productivity in period j, Aj is the partial productivity of the land and Lj is the area harvested in period j. For further details, see Vieira-Filho (2018), available in the references.

References and recommended readings:

[1] Roof, SFP, from Capdevile, G. (2021). Earth-Saving Technologies. Brazilian Agricultural Research Corporation (Embrapa). Accessed on: 19/01/2024.

2018. Land-saving effect and production gains in the Brazilian agricultural sector. Text for IPEA discussion. Accessed on: 19/01/2024.

USDA - United States Department of Agriculture. International Agricultural Productivity. Accessed on: 20/03/2024.

Brazilian Institute of Geography and Statistics (IBGE). IBGE Automatic Recovery System - SIDRA. Accessed on: 20/03/2024.

Federal University of Goiás (UFG). Atlas of Pastures. Accessed on: 20/03/2024.

Alcântara, IR; Gasques, JG (2021). Farming production in Brazil: innovation and land-sparing effect. Accessed on: 21/03/2024.

Martha-Jr., GB; Alves, E.; Contini, E. (2012). Land-saving approaches and beef production growth in Brazil. Accessed on: 21/03/2024.

* Use this material as a reference freely.
All Agro in Data graphs and data are available for use. You have permission to use, distribute and reproduce these contents in any medium (graphs and data are open to embedding), as long as sources and authors are credited.
Data produced by third parties and made available on Agro in Data are subject to the license terms of the original authors. We will always indicate the original source of the data in the documents made available, and it is the user's responsibility to always verify and cite the original sources.

Are you already following our official channels? Click and follow our whatsapp channel, follow us on LinkedIn and sign up to receive our biweekly Newsletter. Stay up to date with research and knowledge on global agribusiness issues.