Environmental management

Weather is one of the risk factors with the highest impact potential in every agricultural and cattle raising activity. Also taking into account that it is difficult to forecast severe weather conditions in due time to make decisions, the Company seeks to diversify its portfolio in different Brazilian regions, with different rainfall regimes and distribution, in addition to carefully selecting the most adequate crop for each region, given its history, natural fertility and maturity. In areas recently added to the Company’s operations and with no previous crop growth, for example, the cattle raising is used as a temporary activity, as well as pasture planting, to add organic matter and mitigate climate risk.

Furthermore, BrasilAgro seeks to create conditions to minimize climate impact, i.e.: selection of suitable crops and various cycles in ideal proportion for each property and its rainfall regime, pasture planting in off-season, direct sowing, in addition to respecting the ideal planting calendar for each region.

São José and Rio do Meio units have irrigation systems in part of the properties, ensuring high productivity during short summer drought. The Company is evaluating expanding the irrigated areas to other units in order to mitigate this risk even further in the long term.

Portfolio diversification and good agricultural practices are the core pieces of the Company’s business model and, therefore, they do not entail significant costs.

Emissions

BrasilAgro is working on entering into partnerships in order to map and measure its carbon footprint in agricultural areas. As an example, the Company has a pilot project together with Bayer and Embrapa, at Chaparral Farm. The project has a 3-year term and will adopt different methodology to calculate possible carbon footprint in agricultural activities and study the possibility of future sale of carbon credits.