Soybean, Cotton and Corn – Brazil

Key Facts

• Client: Grupo Scheffer “Scheffer”
• Term: 10-year loan
• Guarantee instrument: Maturity Subordination Guarantee
• Guarantee exposure: 43% of loan value
• Effective date: March 2022

Deal Summary

AGRI3 is supporting the mobilisation of USD 5 mn from Rabobank for Scheffer.

Grupo Scheffer is a large family-owned farming group in Brazil involved in the production of soybeans, cotton, corn and cattle ranching.

The facility is used to finance a project focused on applying sub-soiling on 10,000 hectares of land, aimed at improving soil resistance against drought and potentially enhancing productivity.

As a participant in the AGRI3 transaction, the company has pledged to adhere to full forest code compliance and indicated its commitment to maintaining reserves above legal requirements.

Impact Rationale

The loan supports Scheffer to expand the application of its sub-soiling practice, which supports the most optimal tillage practice for sustainable crop production in semi-arid environments, resulting in remarkable improvements in drought resistance and overall production resilience.

Scheffer’s implementation of the sub-soiling technique is an integral part of its comprehensive strategy for sustainable agricultural production. A 15% increase is expected in agricultural yield through sustainable intensification.

The company is also a leader in implementing regenerative agricultural production and the development of biological pest control methods, reducing chemical inputs and improving soil health.

As a part of the AGRI3 investment, Scheffer has committed to share its findings and experiences regarding sub-soiling, biological pest control, and regenerative agriculture with fellow farmers through engaging field days.

Impact Targets

Forest Protection

1,300 ha of net Legal Reserve surplus retained on the farms in the Cerrado biome

Sustainable Agriculture

15% average yield increase on project land

Rural Livelihoods

115 employees trained in sustainable agriculture