Silvopastoral system with eucalyptus and beef cattle: an economic feasibility analysis on a farm in Mato Grosso/Brazil

The study aimed to analyze the economic viability of beef cattle, eucalyptus and conventional silvopastoral system on a farm in Mato Grosso. Information regarding costs and revenues of eucalyptus in the conventional system and silvopastoral were extracted from the study Rigolin and Lima (2010) and the costs and revenues of cattle both the conventional and the silvopastoral system were provided by the property studied. The analysis tools used were time ROI (Payback), Net Present Value (NPV), Internal Rate of Return (IRR) and the Cost Benefit Analysis (CBA). The analysis was based on one hectare land, the Minimum Rate Attractiveness (TMA) was 8% per year and the period was 12 years. The results showed that all modalities are economically viable, however, the NPV of the activity with eucalyptus conventional overcame Silvopastoral and Conventional Farming.