Economic Feasibility of Crop‐Livestock Integration System in Brazil

Abstract

We investigate the economic feasibility of the Brazilian crop‐livestock integration system. Under this system, the Brazilian farmer can produce soybeans, corn, and graze for cattle on the same land during one crop year. This technology can substantially increase agricultural production in the country. We contrasted the stochastic net present value of traditional farming with the integrated system under four different scenarios. To rank the scenarios, we use stochastic dominance methods. The results suggest more significant economic gains for crop‐livestock integration scenarios.