Forests and Agricultural Productivity: Financing Conservation in Brazil's Agricultural Frontier

 

Forests and Agricultural Productivity: Financing Conservation in Brazil's Agricultural Frontier

Location: Brazil
Partners: Woodwell Climate Research Center, Amazon Environmental Research Institute (IPAM)

Between 1985 and 2022, over 13% of Brazil’s Amazon–Cerrado Region (ACR)—where the Amazon and Cerrado biomes converge—was cleared for agriculture. This included the loss of approximately 5.18 million hectares of forests and woodlands.

Brazil’s economy heavily relies on agricultural commodities like soybeans. In 2022, a record soybean harvest contributed to a 2.9% rise in national GDP. However, increased deforestation—mainly for agriculture—has led to rising local temperatures and vapour pressure deficits, negatively affecting crop yields.

Scientific analysis shows that forest cover explains nearly 30% of the variation in soybean yields across landscapes in the ACR, due to forests’ ability to cool and stabilize the local climate. Deforestation also reduces agricultural resilience during heatwaves and dry spells, threatening long-term productivity despite increased cultivation.


To address these challenges, Brazil is leveraging technological and digital innovations to better understand and communicate the value of forests beyond carbon sequestration. Key tools and datasets include:

  • MODIS products (Land Surface Temperature, Evapotranspiration)

  • TerraClimate (monthly water balance data)

  • MapBiomas (land-use and land-cover maps)

  • Google Earth Engine and R packages for big data analysis

These tools have revealed, for example, that Indigenous forested territories in the Amazon are on average 2°C cooler than nearby deforested areas.


Results and Impacts

The use of new data products and analytical tools has enabled:

  • Better landscape design to optimize both climate resilience and agricultural productivity

  • Support for policy compliance, including Brazil’s Environmental Reserve Quotas (CRA) and the Native Vegetation Protection Law

  • Improved ability to identify how much forest cover is needed for optimal farming outcomes

  • Stronger justification for connecting forest patches to conserve biodiversity

Case Highlight: The CONSERV Project

Led by the Amazon Environmental Research Institute, the CONSERV Project exemplifies how data and innovation support conservation:

  • Uses mapping to identify vegetation surplus on private land

  • Offers financial incentives for forest protection

  • Incorporates policy, technological, and financial innovations to encourage sustainable practices

Outcomes:

  • 21,000 hectares protected across 23 properties

  • 2.2 million tonnes of CO₂ emissions potentially avoided

Previously, enforcing Brazil’s forest protection laws was difficult due to limited monitoring. New technologies now enable more efficient prioritization of areas for conservation and climate action.

Scaling Up: The Way Forward

To expand the success of such initiatives:

  • Valuing forest ecosystem services for their agricultural benefits is essential.

  • Financial mechanisms (e.g., REDD+, ecological taxes) must support landowners in conserving forests rather than clearing them.

  • Enforcement through government regulation, market mechanisms, and supply chain accountability is crucial.

International cooperation will also be vital, as the ecosystem services of forests extend beyond national borders.

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