Cotton, Soy and Cattle – Brazil

Key Facts

• Client: Samuel Locks (“Locks”)
• Term: 10-year loan
• Guarantee instrument: Maturity Subordination Guarantee
• Guarantee exposure: 40% of loan value
• Effective date: September 2022

Deal Summary

AGRI3 is supporting the mobilisation of USD 20m from Rabobank for Samuel Locks.

Samuel Locks is a grain and cotton producer that started activities more than 15 years ago in Mato Grosso, Brazil.

The financing aims to support Locks to transition towards more regenerative practices on its farms. This transaction can illustrate an example to the market of a large scale circular economical agricultural model that intends to expand its regenerative agricultural practices, showing higher yields whilst improving soil health through input reduction as well as overall reduced GHG emissions.
As part of the transaction AGRI3 agreed with the company on a set of KPI’s related to the protection of legal forest reserves, expansion of sustainable agricultural practices and knowledge sharing with other farmers.

Impact Rationale

As part of the facility the company will commit to implementing a circular / regenerative business model on 11.000 hectares by 2025.

This includes substitute chemical fertilizer for compost from feedlot, reducing herbicides in soil preparation, increasing the area of cover crops and a general reduction oin agrochemical application. This will all be done whilst maintaining existing yields of soy, cotton and beef. The farm will also maintain current and excess legal reserves in line with the Forest Code

Lessons learnt from this transition will be the disseminated to other farmers through field days and reports.

The farm will also maintain current and excess legal reserves in line with the Forest Code.

Impact Targets

Forest Protection

42,204 hectares of forest protected

Sustainable Agriculture

11 K ha managed under sustainable (regenerative and
circular) production techniques

Rural Livelihoods

Farmer days to disseminate results of transition