AGRI3 and Rabobank Announce Expansion of the Renova Pasto Program

In this new phase, Renova Pasto 2.0 aims to enhance the utilisation of currently degraded areas and promote agricultural practices that may improve both the efficiency and resilience of production systems, based on the technical assessment of each property. The program provides amortisable financing with terms of up to ten years, a maximum value of up to US$ 5 million per transaction, and a grace period of three years, thereby supporting the development of a more productive agricultural sector in the country. Furthermore, the initiative offers co-financed technical assistance for establishing, continuously improving, and monitoring productive and socio-environmental performance indicators, such as yield per hectare, preserved forest area, and improvements in rural living conditions. The socio-environmental evaluation and monitoring, alongside the formulation of improvement plans for participating producers seeking to restore degraded areas for more sustainable pastures and crop fields, are carried out by the Brazilian consultancy Produzindo Certo. Renova Pasto 2.0 distinguishes itself from the initial phase by expanding its scope beyond livestock, now also encompassing annual crops. The new version of the program adopts conservation indicators and includes commitments to forest preservation, referencing the baseline of native vegetation, as well as providing for independent technical monitoring, thereby strengthening the governance and credibility of the initiative.

According to Ricardo Silva, Head of Rural Banking for Rabobank in Brazil and South America, the initiative addresses the growing global demand for food by increasing productivity in already converted areas and encourages more resilient agricultural systems. "This new phase of our partnership with AGRI3 provides a tangible solution to support producers in adopting more efficient and sustainable models through the restoration of degraded areas and the integration of different crops," stated Ricardo.

Casper Havinga, Investment Director at the AGRI3 Fund, states, “Access to long-term financing is a critical enabler for producers to transition toward more sustainable and productive land use. Financing for pasture restoration supports improvements in productivity and resilience, reinforces farm sustainability, and assists in decoupling agricultural expansion from deforestation. We are pleased to further strengthen our collaboration with our partner Rabobank Brazil, as this form of blended and catalytic financing plays a vital role in scaling up solutions for sustainable agriculture.”

For Rabobank clients, Renova Pasto has already demonstrated how tailored financial solutions can unlock sustainable productivity gains in the field. "We faced degraded pastures and limited financing options, with short terms and little grace period. Rabobank introduced us to Renova Pasto, providing improved conditions and an environmental focus aligned with our values. Following the financial analysis, the project proved to be feasible even with low cattle prices. Today, we observe enhanced pastures and livestock with increased value," states Wilton Roberto Guimarães, from Niquelândia-GO.

"Upon joining Renova Pasto, my objective was to restore and intensify degraded pastures. The extended repayment period and the three-year grace period made the project viable, and Rabobank managed the process efficiently. We anticipate that results will also emerge swiftly, enabling us to enhance the productivity of the area through pasture renewal. Furthermore, as the financing offers a long repayment term, it will be possible to implement crop rotation, such as planting soybeans for a designated period, which will further increase the efficiency of our land, including livestock," affirms Geraldo Antonio Delai, from Canarana-MT.

Renova Pasto 2.0 is available to Rabobank clients who meet the program requirements. Final contracting conditions are subject to the technical analyses stipulated within the initiative. The testimonials presented reflect the specific experiences of participating clients and do not constitute a promise or guarantee of future outcomes.