Good afternoon to all. We're here once again for the earnings of BrasilAgro, Q1 2022/2023. Just to clarify for those who are beginning to follow us, that fiscal year goes from June to June every year. So today we will be talking about the first three months of the harvest 2022/2023. I have here Mr. André Guillaumon, our CEO, and Gustavo Lopez, our CFO. Okay, you have the floor, André. Before that, I'd like to mention concerning Q&A. If you wish to ask a question, please raise your hand. If you want to send in writing the questions, I will read them here. If you want to follow in English, we have simultaneous translation in the link in interpretation. Okay, André, you have the floor.
Thank you, Ana Paula. Thank you, Gustavo.
I'd like to thank all the participants who are always with us, following the results of the company, believing in the company. This is Q1. We hope this year will be more calm than the previous two with pandemic restrictions, higher costs. We're seeing this year as very positive for agro in Brazil. As Ana said, it's our Q1 . As I always say, while there's a lot to see, but we already see some trends, and we will clarify this during our chat today. As always, feel free to ask questions, to participate this forum. We wanted to have participation. Okay, let's go to the presentation. This is the first highlight, the first slide. As always, we have the highlights. We have financial highlights, operational and real estate.
In terms of finance, the company closes the quarter with BRL 299.8 million, net profit BRL 42 million, adjusted EBITDA BRL 107 million. Later on, we will give you more details. We know that last year we had spectacular results. In terms of operations, 1.7 million tons of sugar cane. We began planting soybean. We have 38% of soybean is already planted, especially in Mato Grosso and Goiás. The climate has been stable. In terms of real estate, like we say, our company is in the market. We're buying and selling all the time, identifying business opportunities that will bring profitability for our investor. In this quarter, we had two movements. We had a purchase and a sale. We purchased Fazenda Panambi. Later on, we will give you more details.
Yesterday night, we announced the first sale, a fraction of our operation in Paraguay. Well, let's talk about Panambi. Panambi is a farm in a very productive region in Mato Grosso. It is here, 10,800 hectares, of which 5,400 hectares are agricultural land. This area in the past, five-ten years ago, they were planted, then they transformed this into pasture. It wasn't their main focus. Their focus was cattle raising, and we acquired this real estate to transform all this area, which is pasture, into agricultural land. It is a very good region with large producers, and we believe it has a great potential for a second crop. It's in a region that is very favorable, BRL 285.6 million. On the right, we also made the first sale in Paraguay. We're very happy.
I remember here in this forum, we announced in a timid way, for example, Jatoba Farm, when we came to announce that we were selling the first 600 hectares of farm that had a large agricultural land. In Paraguay, it's not different. We have an operation. We've been there for five, six years producing. We had spectacular years. We had three years with a drought that affected production, but it shows that we have potential. Here I reinforce some aspects. We began planting cotton also in Paraguay. Last year, 800 hectares. This year, we will increase cotton and the whole region is planting more cotton. The group was one of the first.
We were one of the first to plant soybean, now more than 80,000 hectares. There was very little cotton in the next harvest. Paraguay should have 15,000 hectares of cotton.
It's economically feasible. We see here $1.5 million, and here we see a TIR of 27.9%. If we analyze this in reais, 42.2% return. We're selling 500 useful hectares, and it still has a lot of area to be sold and some part of this to be transformed still. This shows that there is liquidity in this region, and it show the company is being efficient in capturing these profitabilities with these opportunities. Well, here, this is a backdrop. Gustavo will be talking about this. We have been showing this graph. We showed this graph on a larger scale in the past, and now we reduced it. We began showing a picture in the short term, soybean 176, now 184.
I'd like to remind you that this is corn, BMF corn. We began with 101, now 89. Cotton. A crop that had a strong drop due to the scenario that you know very well, the possibility of a worldwide recession, interest rates, cattle raising. A little of the effect linked to our exports to China and also the volume. We believe that there, the volume would be smaller. We're talking about food, soybean at a high price, but the number, the volume of confined cattle was high. Ethanol, when we look back in the beginning of the pandemic, here we see the numbers then during the year, 3,000. More recently, we had an impact due to the changes due to tax on gasoline.
This removed a little the competitiveness of ethanol or the price of ethanol, and thus this harvest will produce more sugar than ethanol.
This product suffered and Consecana, the last line, due to the same reasons. Well, one recurring question at the beginning of the war, we have shown how we would deal with this issue, and fertilizers were discussed in the media on television. A country that has 27% of its GDP focused on agriculture needs fertilizer. During many calls, we purchased fertilizer. In advance, we bought the fertilizer. Chloride, we bought before the Ukrainian war. There were the embargoes, and we purchased phosphate fertilizers. We bought later. There was space. We bought fertilizers and the price of fertilizer with phosphate continued to drop. Nitrogenated, you know, it depends on the price of natural gas in Europe with ups and downs. When we look at the price, here we see the average price. We had fertilizers at BRL 1,350.
Today, at 675. When we look at chloride, the same, $740 in the past. These historical prices normally are 390, 400. We bought at 700. We thought it was a good deal. Now we're seeing these prices dropping a lot. It's important to stress, as I said, we have a large volume of planted area. This began to be used in our areas in July, when we began to use fertilizer and then plant the second crop. We had a deadline to make decisions until July. Also because of the volumes, we're large buyers. 80-90 thousand tons. You can't buy this a week before, so we bought in advance. I would say that we made more better decisions than bad decisions. There was a great uncertainty. Everyone bought.
Here you see the pie chart. We have 91% already bought the inputs. We still have 9%-10% to be bought, basically nitrogenated in the second campaign. When we say second campaign, we're talking about the second crop, winter crop, and also sugarcane in February, March. The graph below shows the volume delivered. We're concerned not only with the fertilizer but also the delivery. More recently, delivery reached high volumes. We saw there were many problems with roads being blocked, but I can tell you that 84% has been already delivered. We have no deficit in any unit. All the units are planting in Xingu. They finish planting, the others are planting, and they have their fertilizer guaranteed.
It was a year with a lot of volatility, and we always try to have the best combination of revenue cost. There was this uncertainty with fertilizer. Well, here, as I always say. Here we reinforce that we're diversifying. This graph shows our company geographic distribution. In agriculture, you have to diversify. This is very important. When you have this diversity, you can attenuate also climate problems. Many times we saw, for example, the costs in Mato Grosso higher in Maranhão, Bahia, an important advantage in terms of logistics in comparison with Mato Grosso. The new acquisition, we have some leasing contracts. The company was very efficient with its partnerships. We included areas in Xingu, Rio Preto, Regalito, 5,000 hectares. We diversified in a region in Mato Grosso to the west, Comodoro, other areas in Xingu too.
The company was very efficient. As we always say, the combination of our own land with leased land. The last, the sale. While here, although in the last year, you're talking about Q1, but during the last year, you know how the company was efficient in selling assets. Year- after- year, we're being able to grow the planted area. This is very important. It represents cash, stability in the operational result, always trying to bring foreseeability for investors. We know that this business has a lot of volatility. Agriculture has volatility. How do we attenuate this volatility? Looking at the pie chart, you can see the breakdown of crops where we have an enormous diversification of the portfolio, soybean, beans, also here, corn, this, and sugarcane and cotton.
The pie chart on the right shows our area that is cultivated with our own land leasing for our production. This balance is fundamental. I know with our own real estate results and operational results, leased areas, we're always focused in being in stable areas. The combination of these two strategies, the way we see it, is a winning strategy. Enabling important real estate gains and lowering the cost with leased land and also giving us more stability in the results. This strategy is strong inside the company, and we're always calibrating this strategy, adapting it for it to be efficient. Well, here a new graph. Congratulations. Here, we're using this graph to see better where we are and what we are doing. We were careful in placing the main crops, beginning of the planting, then harvest.
This helps us to see better and understand better the results from Q1 to another, not only seasonality. Here we have also commercial factors. For example, when you harvest in Q3, it doesn't mean you're going to sell in Q3. There is seasonality, but we will explain. As I said, soybean, we have 30-plus% already planted. We began now. We will begin next week planting corn. We're talking about the second crop, the summer corn, a little in Bahia. The beginning of the planting of beans, also cotton. This happens on two occasions. In November, we begin to plant cotton in Bahia. We continue until middle of December, and in January we plant the second crop, cotton in Mato Grosso.
It's a very dynamic business, and there's always a challenge and I always say, we're always monitoring the climate because it affects us all year-round. When we talk about the climate, we have good news. We mentioned this in the previous call, La Niña becoming weaker. This is a characteristic that favors the large region that produces in Brazil. A weak La Niña. Well, what would be the ideal to plant under La Niña? The first semester of the calendar year. We had La Niña effect and in the first semester of the next year, El Niño. Why? La Niña anticipates rain, so when you have El Niño, you have longer rainy period. The rainy season becomes larger, and this always helps agriculture in Brazil. Brazilian farmers love this.
You have sugarcane harvest that develops better with the situation in April, May until June. We're telling you that planting is uniform, and we believe we will have a more neutral year next year, a more normal situation for rainfall. This is very positive for Brazilian agriculture and for us. Well, here a summary. I always highlight that cattle raising, it's a transition for us. We transform pastureland into agricultural land. If you transform pastureland into agricultural land, you have a lot of volatility in the first two years. Cattle raising, we use to attenuate this volatility. In the last few years with everything we have seen, apart from being an excellent activity that mitigates risk and helps the value of the portfolio, it has also been very profitable, cattle raising.
Here a little of the number of heads of cattle. Here, pastureland. Close. GMD is the average gain, weight gain. For us, it's 600 grams, and what we had in the first three months, 350 grams. This for us is very positive, and I'll explain. The Q1 is made up of dry months: July, August, and September, where there is. We don't have too much pasture. Although the graph shows an expressive difference between estimated and actual, and well, I believe here, just to reinforce again, we're always monitoring profitability. The company today has a position. We have receivables from farms sold. This is a picture of our situation. Soybean, 57% sold soybean. Here, 5.55. The company was efficient in selling receivables from farms. Very effective, 34% sold with an exchange rate of 5.9.
Now, when we look at 2022, we have already sold practically all the harvest and the second harvest. We have 20% of the corn sold. The cotton, the company has also hedged. Here we have with this distribution of rain, we made some changes in Mato Grosso. Cotton sold at a price of BRL 88.98, and percentage of hedge 45.94%. It's a crop that suffered a lot, but we have an effective hedge position in cotton. In the case of ethanol, a new product, and we have been hedging for ethanol 33-38% sold at an average price that you can see here. When you look at the spot price, BRL 2,700, the cubic meter of ethanol and the company has almost 40% sold at a higher price. Well, now I'd like to pass the floor to Gustavo.
He will explain the revenue. Okay, Gustavo, you have the floor.
Thank you, André. Thank you. I'd like to thank all those participating. This is the Q1. We always said that last year was a spectacular year in terms of cost and price. Now we will explain this effect. André mentioned during this quarter, we had the following in the company, the harvest of sugarcane. When you compare a quarter with another, the production of sugarcane was similar, sales were similar, and now we will see margin. Last year, when we sold sugarcane, we had an average of BRL 1.3 per kilogram. Entering this quarter, as you know, the government policy, they gave tax exemptions, ICMS, and this made ethanol a little less competitive. With this, we sold at BRL 1.10.
We had an impact on the price. On the other hand, André mentioned we are working with a fertilizer that is more expensive. CCT also is more relevant. All of this provokes a drop in the margins. Later, we will try to show that the margins continue being very good when we compare with historical averages. The second effect that we will see here during the Q1 in 2022, we had 70,000 tons of soybean and 40,000 tons of corn. This year, we tried a different strategy. We tried to sell most of the soybean and corn in the first semester of this year. We had 25,000 tons of soybean and 60,000 tons of corn. We can look at net revenue of the company, BRL 378 million, first three months of last year.
We will show the tons and prices. Here we have a summary and we see the impact of 21%, a drop of 21% when we compare with last year. We will see that we have a sale of soybean that is a little less, a little more of cotton. When we look at June, we're talking about BRL 50 million difference between price and quantity. On the other hand, sugarcane that I mentioned that we were selling 16%, 16% less, there will be an impact of BRL 95 million. When we look at the company's EBITDA, last year we had BRL 120 million. This year we're talking about BRL 106 million.
The 223 million BRL of last year, 80 million BRL of this EBITDA comes due to the sale of soybeans that I mentioned. 60,000 tons that we sold of soybean and the corn that we sold. On the other hand, we had an EBITDA of 140 million BRL from sugarcane for this tonnage that we sold. We harvested and sold, and we made a sale at 185 BRL per ton and 85 BRL of cost. The margin was 100 BRL. When we translate this in BRL per hectare, we're talking about 9,000 BRL per hectare profit. This year we had a smaller amount. We sold less grains and this 1 million tons that we had last year, we sold roughly 159 per ton.
The cost is 95 and the margin now is BRL 60 per ton. When we compare a year with the other, we have 50% difference in the margin in sugarcane, and the rest also is seasonal. It depends on the amount of product that we carry. When we look at the company's profit, net profit last year, BRL 107 million. This year, BRL 42 million reais profit. On the next page, here we explain this difference. Soybean, last year during the quarter, we sold 60,000 tons. This year we're talking about 19,000 tons, and when we look at the price per ton, it was better. This, the volume is smaller. There was a drop in the volume, and this has an impact on the results.
Corn, we sold more tons, but it didn't compensate the variation in soybean due to the price. In sugarcane, as I mentioned, last year, the tonnage was very similar, but the price last year was BRL 185, sorry, and this year BRL 159, a drop in the price. These three products had an impact on net revenue here. When we look, we see here net revenue, BRL 378 thousand last year. This year, BRL 299 thousand. Here we see the EBITDA, which reached 50%. We begin to see a drop in this quarter, especially because it's the only product that we're producing. We should expect during this year to have an EBITDA margin of 60% of what we had last year.
In soybean, last year we had a margin of BRL 1,000 per ton, 4,500 per hectare. Today what we're expecting is BRL 600 per ton and 2,800 per ton. A drop. In sugarcane too, same thing. Last year we had six hundred, we had a cost of BRL 85 per ton for sugarcane. When we convert this, BRL 9,000 per hectare. This year, for this harvest, we're expecting the cost BRL 95. We're talking about a margin of BRL 60. When you talk about hectares, 4,500 profit. The margin will have a drop. There will be an impact on margin due to higher costs. Soybean and corn, it's the cost that went up. There is. We have 30% more cost due to fertilizer.
When we see this adjusted a bit, once again, to 223,000 BRL versus 107. This includes sugarcane and for Q1. Here, this includes sugarcane, and the difference is the inventory that we already sold. Well, here, this shows once again the impact of the main crops. Here we see BRL 823 million. From the net profit, we deduct depreciation, amortization, taxes, and then we add fair price of assets that were produced but not sold, derivatives, and we get to BRL 220 million last year. 60% is sugarcane and the rest is soybean. 60,000 tons that we had last year. A little less corn this year. A bit that dropped, and the participation of sugarcane continues to be relevant.
These are the two main crops, sugarcane and soybean. We began the year now. I believe that during the next quarter, we will harvest more sugarcane. We will have everything planted. For Q3, Q4, we will begin to suffer the impact of soybean and corn. We're optimistic to have a positive operational result. Once again, we were not able to get the margins that we had in the previous year because the cost for corn, sugarcane, and soybean had an increase. The cost went up when we compare. On the next slide, we will show here the company's numbers. We didn't have great changes. We will have cash and cash equivalents, which is very similar. Investments went up. We included Panambi Farm that was bought. These two were recorded at cost.
The receivables for the sale of farms, we have part of this in the short term, part in the long term, BRL 480 million. Here too, a farm that we sold and will deliver, Alto Taquari. We have to record this. In 2024, we will record the sale. We see the loans. We're paying some for some loans and the liability. This farm, part of it, we paid with receivables and operational cash due from the farm that we sold, and part will remain as a debt. We call this acquisition to be paid. Well, the company's numbers are very healthy. Now, we will see some details of the company's debt. We have a debt of BRL 400 million with a cost 93% of the CDI index. We have a third with IPCA. Here we have some prefixed loans due.
We have a debt of BRL 150 million to pay for the next harvest, but the situation is very comfortable. Reminding you that we have receivables from the sale of farms that are not included here, BRL 150 million, and the rest in the next year. Here, the company's dividend. We said we want to pay dividends in a recurring way. On October 27, we approved BRL 300 million to be paid as dividends on November 16. We will continue working, so next year, by selling farms and operational results, we want to continue paying dividends. This is also important to highlight during this semester with the administration council, Alejandro, Isabella Saboya de Albuquerque, Eliane Aleixo Lustosa de Andrade, Mariana, director of the company.
They worked during this semester for us to really adapt the company to the rules of the SEC. We created an audit committee. Soon, we will mention and communicating the members, and we approved also policies for transactions, compensation also for the auditing committee. With this, we conclude many changes and adaptations that we made and the fiscal committee, the fiscal committee that continues. We continue to work with the audit committee and fiscal council, and we understand that with this, once again, we reinforce our commitment in terms of looking for better policies for governance and transparency. On the last graph, this shows the evolution of our shares, AGRO3. We continue to work to have a better price for our shares. We understand that we have a discounted price, the combination of operations and sale of real estate.
We will continue saying that we want everyone to know our business well, and we invite potential investors to invest in the company because we understand that we have a very good position. Thank you. Now we'd like to begin the Q&A session.
Thank you, André. Thank you, Gustavo. We have here Pedro from XP and Henrique from BTG Pactual to ask questions.
Yes. Good morning, André, Gustavo. Thank you for the opportunity. My first question is about the allocation of capital. Considering this, outlook, more difficulty in buying farms, and as you mentioned, results should continue to be above historical levels. Talk to us about allocation of capital dividends. Can we expect a dividend yield more in line with history, 6%-7%, or can we expect something in line with the last year, close to 10%? That's my first question.
The second point, whether you could give us more details about the sale of the farm. It had an attractive yield, but it seemed very small, a small sale. Can you explain the strategy of the company behind this sale? Wouldn't it make sense to sell more, or can we expect more sales of this size later on?
Thank you. Pedro, thank you for the questions. We could spend a long time talking about these two questions. Okay, let me try. First, our challenge is to be an anti-cyclic company. We have to sell farms when everyone is buying and buy farms when everyone is selling. This is the magic of our business. It's simple, but difficult to execute. We love these simple things that are complex in their execution.
You are right in saying that, and I've been reinforcing this, we should sell more because of the liquidity in the market. The company will continue being a seller and a buying company when we see good opportunities to generate value for the shareholders. In a certain way, we will continue turning the portfolio. We have an amount that we believe it's important to sell every year, and this brings stability of results. Going back a little, we didn't talk about this number, the BRL 520 million in profit that we had in the middle of the year. BRL 300 million comes from operations and BRL 240 million comes from real estate sale. This is what we intend to do. We're balancing operational results with the sale of real estate.
If this happens, and this is what we want, the company continues being an important payer of dividends. In terms of policy, we're in the Novo Mercado distribution of 25% of the net profit to shareholders. In a recurring way, we have been paying more, and I have no doubt that the day we need to buy large assets, we will say, "Okay, let's invest," because shareholders know our capacity to generate value for them. I believe this is a point that I'd like to stress and clarify the point concerning dividends. The second point, very good question. Why did you sell a small amount of land? It's small, linked to a leasing operation for the buyer. We believe that this sale will not stop here. We will continue selling with other fractions like this one.
These are new regions, Pedro. When you have a large company producing in the region, they say, "Oh, it's because it's a large company." Why small? When you have small farmers producing, it's because it's good. Some people say, "Oh, the production is good because it's a large company." Well, this fraction, a small amount of land, aims at bringing new entrepreneurs to the region. When I talked about the sale, I talked about the sale of Jatoba. Very similar, both sales. In Jatoba Farm, we sold initially 600 hectares then. also very important, a sale that shows that the assets appreciated and the company's capacity to generate value.
A sale, like you said, a small sale, but with a return rate that is high. André Guillaumon, why didn't we sell more? This is a driver that doesn't depend on us.
We work actively to sell, but whether it's going to be a small amount or a big amount, we sell. We're analyzing proposals of larger sales, and the focus is to reach 3,000-3,500 per hectare. Remember that we paid $280 for this land, and today we're selling at $600-$663,000. I'm not worried because it's small, but the company had the right strategy. This asset has liquidity, and even more, when you have liquidity for small, you have liquidity for the large. The opposite is not true. When you have liquidity only for large clients due to logistics, efficiency, and other things, you don't have efficiency to sell to small farmers. Selling to small farmers doesn't worry me. Selling only to large farmers worries me.
I believe that the second point, we're very optimistic with cotton in Chaco. It will be an important crop because it has high fertility soon, and cotton, a cotton crop to be consolidated in a region, it generates real estate value. Adding up everything, a small sale, but this doesn't worry us because when you have small sales, you also have large. The opposite, no. Did I answer your question? Thank you.
Well, answering Pedro, André answered two questions that came in writing concerning dividends since our results was smaller than expected. We have answered the question on dividends. There's another question, whether we will have a distribution of dividends this year because of the sale. Now I'll pass the floor to Henrique from BTG for his question. Good afternoon, André, Gustavo, and Ana.
My question, it's a follow-up in terms of capital allocation. I'd like you to focus on growth. We saw the company in the last few years consolidate its business model, and now with strong numbers, when we have the impression that the space for appraisal of NAV seems slower now that commodity is stabilized. I'd like to hear from you, what are the main opportunities and priorities of the company for growth in the next few years? And buying more land, what is the strategy? Or leasing lands or verticalizing. What are the main priorities from now on?
Well, a good question, Henrique. Thank you once again for participating. I will begin talking about where we're looking. What you said makes sense. There's this stability in the price of commodities, but you should remember that the company has part of its portfolio.
In the case of Paraguay, we have transformation. This will attach value to the land. When we look at Brazil, you have few assets to be transformed, but we still have the ramp-up, the growth in yield of areas that were transformed in Fazenda Bom Jardim, Chaparral, Rio do Meio. I would say to you, even if you stabilize the price of commodities, you have an important value. For example, whether you have an area in the savanna, it's worth 100 bags. The next year, it's going to be worth the cost of CapEx plus here. Then cost of CapEx and two premiums until it stabilizes and it gets to 350 bags like in Bahia, 400 bags. This is important.
In spite of the speed of transformation being slower because most areas were already transformed, there is still a large part of the portfolio appreciating in value. This is important to highlight. Now, where are we headed? More and more, we're showing the company having recurring results. We, as I mentioned about this harvest, added 10,000 hectares that were leased. Only 1,000 are being included in this harvest. 8,000-9,000 will be included in the next harvest in regions where we have a high potential to have a second crop. What do we have? We have value generation in the appreciation of the portfolio. We have also new areas with leasing that we leased, and we will continue working by balancing crops. We grew a lot in grains this year.
Let's see if we can diversify more, have a better mix. The company continues to grow. When we put acquisition of Panambi plus leasing more than 25,000 hectares, that will be in operation in the next few years. This is very good. 25,000 hectares is an expressive amount. The third driver of results is in verticalization of some production units. I mentioned here irrigation projects in Bahia that are being implemented. We already have part being implemented. Yesterday, we discussed with the teams and people from outside these projects. We discussed them. We have a third driver for value generation, diversification and intensifying production in some units in Bahia. When you look in the short term, I'm looking at the next three years, not ten. The company will continue to grow, transforming areas that were bought.
In a certain way, you are right, with a lower risk, you have a great appreciation of the multiples, the land transformed in the last four, four, five years. The growth of leased area, this is the challenge we have to have a third crop or irrigated land, especially in Bahia. We have projects to expand irrigation for sugarcane. It should require results, but will give us good results, especially in Maranhão. We have a project for expansion for irrigation in Maranhão, increasing even more the profitability from these areas. In 3 minutes, I tried to say, yes, there is value to be generated by the portfolio. There is value in the leased land, diversification of portfolio, and the company is looking at all these opportunities. Perfect, André Guillaumon. Thank you. Well, now we have some questions in writing.
The first, Damon, concerning a point that Gustavo mentioned. Concerning the creation of our auditing committee, he wants to know if this will have any impact. Is there any impact with creating the audit committee? Well, you know me, I am an agronomist, but I learn quickly too. Let me tell you about the committee. The committee is something that the CVM in Brazil asked us. We prepared the committee. Initially, we had a feeling that the audit committee would substitute for the attributes of the fiscal council, but we maintained the fiscal council with its attributes. Now we have an audit committee made up of independents and counselors of the company. They will act differently from the council, the fiscal council. I'd like to share with you. The council is analyzing if the numbers are well calculated.
The auditing committee goes further to see if the process is performing well. I see that this can help the company. It shows that we're in tune with the capital markets and we were always this way. We were the first to participate. Every time we have a transaction, we have an assembly. I learned a phrase from a lawyer, and he said, "It's not enough to be, you have to show that you are." This will show transparency, governance, and the zeal we have with small investors, minority investors. It shouldn't change the company's life because the company's life is to identify assets, buy assets, invest, and then sell.
They will be reviewing things to guarantee that we're efficient with no risks, generating transparency in the governance for all investors in the company. It's the SEC, our CVM demands this, and I believe it will improve things. Just to supplement, the company had the fiscal council. We had a fiscal council. They had the same attributes as the auditing committee. The main difference between the fiscal committee and the auditing committee is in internal controls. We have this department in the company, and they report not to the management. This is the main change that we see. We understood that the fiscal council was kind of temporary. It was requested by the minority shareholders.
Now the fiscal council will analyze the company's accounts, the numbers, and they will collaborate with the hiring of auditors, also approving and reviewing the increase in capital. The auditing committee begins to look at internal controls. That's the idea, that's the change. We have Rodrigo asking a question. Rodrigo? Okay. Hi, Ana Paula, Gustavo Javier Lopez, André Guillaumon. A follow-up question on irrigation. André Guillaumon, does it make sense to buy the equipment or to rent the irrigation equipment? Before André Guillaumon answers, I'll include a question from Antonio Araujo to talk more about the new irrigated areas. BrasilAgro and Cosan are becoming very strong in irrigation, so he'd like to hear more about this.
Well, I'll begin with the second question. It's important for us to separate. I saw that our colleague mentioned Cosan. We're talking about two large irrigation projects.
We have an important irrigation project in sugarcane, and this one in Bahia, which is more focused. It is focused on the production of grains and cotton. Okay. In the case of sugarcane, we're in regions that are marginal and not Corn Belt, and even in the regions that we follow, the Mid-South, it has gone through instabilities in terms of drought. The logic that everyone is looking at for irrigation is to have more stability. Yesterday, I was in a chat session and people were talking about an increase in the last few years in the productivity of soybean, cotton, corn, and in sugarcane. Our production, we got to 600 million tons, 530. If this year is good, it'll be 570, 580.
The sugarcane sector, with more credibility, and we have this, and more foreseeability with the demand of biofuels and the price of sugar, which seems that it changed, the sector is trying to increase productivity. This productivity goes through attenuating the lack of rainfall. You must attenuate the lack of rainfall. The first question, thank you, Rodrigo. Good question. We're always looking at these aspects. Initially, we made a very good operation. We leased irrigation equipment. We always look the operator who is offering leasing. We analyze if it's worth the cost, and we look at the cost. We know that subsidized lines are a few, so we always have to compare.
When you look at leasing, it's very advantages. It's a great advantage. The company supplies equipment, and we pay an amount per millimeter irrigated. There's a minimum amount. We adopted this.
We have one unit that is leased. We have others that are different, more capital incentive, more dynamic than Rio do Meio, larger too. Yesterday in the chat, we talked about leasing or using our own capital. In general lines, why leasing was so important. You had low interest rates in the U.S., and these irrigation companies have access to capital outside. They would take out the money abroad and finance farmers. With higher interest rates outside Brazil, these credit lines decreased or became more expensive. Today, with the picture today, analyzing the economic cost of doing it internally with our own money, it's feasible. In the medium term and long term irrigation projects, we have more production stability, better yield. I'll give you an example.
We ended the harvest of Fazenda Rio do Meio, a new region, a new farm, and we had irrigation. We had irrigation with 217 bags in general. If you ask me, "But what is the logic?" This land, when it's mature, it's worth 350, 400 bags. How much is a land that can generate a cotton harvest of 350 plus 217 for corn. I repeat, we're always saying that the land is worth a multiple of the EBITDA it generates. We have this verticalization changing the multiples of the land. For example, how much am I spending to change this multiple? The numbers are very good. If you want to go into the numbers, we're available. Thank you. Okay, we have a question from Felipe. Okay, Felipe, I will read your question.
Next time, please, we want you to say the question. Since you have a more challenging climate in Argentina, will grains really benefit in the short term? How do you see the climate in Paraguay after a challenging year? I will correct, after a few challenging years in Paraguay. The third, which regions are the focus for acquisition? I imagine on the border, but is there any region where you are more interested? Felipe, thank you. Yes. Grains, yes. As I always say, weather, we will see many things. We do a follow-up. We have the Argentine market, and we look at the climate in Argentina. Yes, your question is very pertinent. We are worried the plantation of the first crop in Argentina is late. This affects the choice of crops.
As I said, if we have a La Niña reinforcing or losing strength, it's better. This will improve things in the south and in Argentina. What is happening is the situation is worse in Argentina in relation to Brazil. We know that most of the productivity, Felipe, or the potential of production happens when you have a good installation. When you have lack of rainfall and variances, this will cause a drop, and this may affect productivity in the future. Now, it's like we say, the game begins in day zero. Paraguay, we believe it improved a lot. When we look at forecasts, we have two meteorologists that follow us, plus a climate company, three meteorologists writing reports all the time.
It's good to remind you, when we talk about long term, these are mathematical models, but there was a forecast of a small summer in January, February, and this is decreasing. It hasn't disappeared, but when you look initially, 35 days with summer. Today, 20. We know that with the fertility of the soil in Paraguay, this facilitates things a lot. Third question. Paraguay grains. Okay, regions. Which regions will we focus on? Well, regions where there is value. Normally on the border, but we already bought areas in the beginning. We bought areas that were not near the border. Well, situation was different. We had a decapitalized agriculture and with more leverage. We have focused a lot on these regions. We talked about pasture.
We're trying to balance more the productivity in Paraguay through leases and in more stable areas, like we did in Bolivia last year with new leasing operations. We leased land. We're looking at this, we're looking at the geographic diversity and, also the balance between your land and leased land. We have our focus is areas where we can unleash value. Luciano? Magnus Holding, what is the forecast for next year in terms of cash, investments, and sales? Well, I will begin. Gustavo can help me.
In terms of sales, I mentioned this, the company has a goal for us to sell a part of the portfolio every year. When people ask me, I say, "We will try." If you say, "I want to foresee," look at the results of the last five years, we will try to do something similar.
Of course, we're understanding that we are more sellers, we can be more aggressive in sales. If you sell an area that appreciated, we go for another that is cheaper. We sold some of our areas and we substituted them for new areas, Panambi and other operations. In the end, the company grew in production land. The company grew. This is what we're always looking at. If you look at the average in the last five years, it'll give you a good idea. We look at these opportunities all the time. Investments. Let's talk about investments now. Investment we have approved by the administration council. This includes everything. New areas in some regions, transformation of soil, investments in irrigation, investments in technology, investments in geoprocessing. We have dedicated a lot of time for this.
Gustavo is leading connectivity projects in some of our units to have 100% Internet. We have Internet of Things at the farms. This has been important. This year we should have a CapEx with restructuring of areas, transformation from pastureland to grains, increase in fertility to buy cotton, and smaller projects with irrigation. We have approximately BRL 100,000 in CapEx. Sale, same average. CapEx, BRL 100 million approximately. And cash flow, I gave you the number. Sale less CapEx and operational result, you know how our cash will behave. Gustavo, would you like to comment? I believe that it's important to share how we think. We work with a budget, operational budget, as André mentioned.
We sell farms, and we say 34% goes to our partner, the government, 85% for shareholders, and 30% we save for investment. André mentioned restructuring of areas, planting sugarcane infrastructure. As I mentioned during the presentation of the results, last year, we had an EBIT of BRL 400 million. Today, 60% of this value. These are our expectations for cash generation. Normally, we make a payment equivalent to 35% down payment. This year, we have BRL 140-150 million to receive from the sale of farms. We're gonna have a positive cash generation year. The amount approved was BRL 130 million. Part has irrigation, part does not have. In general terms, in terms of cash flow, we're very positive.
Well, the last question to close from Douglas Ribeiro, please comment on the difference between book value and internal evaluations of the same assets and price discovery of sales. Hi, Douglas. Good afternoon, André. Okay. We have worked a lot on this. We work every year on this. How we evaluate. Every two years, we use outside auditors, and every year internal evaluation. This is an internal evaluation. We look at the multiples. When we look at the price attributed to our property, we always do the following, the asset, you don't sell it or better. The best way to sell assets is in installments. That's when we capture the best profitability, when you sell in installments. The market for land in Brazil is always in installments. Those who pay cash will get an important discount.
If they get an important discount, we don't want to be the sellers. We have agricultural land where the payment is made in installments. This is important. When we evaluate all our areas, we analyze maturity and multiples. For example, soybean. When we talk about the central area in Brazil, we have a multiple of bags per hectare. If you look at our evaluation year after year, you will see an appreciation, you will see X million, and then next year, more bags of soybean. I was talking the other day with investors.
If we have a vision that is more optimistic or pessimistic for a commodity, we will attribute more or less value to the portfolio, because as I say, you pay and then if you have a more optimistic vision for soybean, you will have a larger flow, and when you bring it to present value, it'll generate more value. The logic is, where you place soybean, where I would even like to have a price of $14 in the next five years. No one here can validate or believe in something like this. We have a vision of medium and long-term for commodities. We convert soybean to BRL 135. What is BRL 135? It's a dollar rate, and we convert to soybean, a 100 pounds weight.
Now, if you look at soybean, today we sold soybean at BRL 170. We sold it today. If you take this price and perpetuate this in the model, you will generate an extra BRL 1 billion in the company's portfolio. No one here, neither manager nor the company, no one. We make money by delivering results. Why? When we look at sales and looking at your question in a recurring way, we sold between 6, 10, 12% above the outside evaluation. I'm talking about external evaluation. When you look at the company's numbers, when you look at the sale, for example, how much was this portfolio worth? We sold this part. In a certain way, I believe that it's between 8, 10, 12, maximum 15% of extra value.
In a certain way, I believe this doesn't compromise the manager's work or the risk of purchase or sale, but it brings a realistic definition. If you look at this year versus last year, we had an appraisal of BRL 200 million, but I'd like to remind you that we also sold, so we lost. We had a real gain year- after- year of 15%-16%. I say once again, everything follows the assumption of what we believe in and what we believe will be the price of soybean. If we believe that soybean will continue at high prices, the asset is worth a lot. Now, if you think it'll go back to a reasonable area, the portfolio will be adjusted.
Since we're talking about, these are not cash sales, so this is good because first, the valuation is not in the company's numbers. According to our logic, we try to be more realistic because we have already made 16 transactions involving sale of land, and they were all in this range, 5%-10% above the evaluation price. That's what we sold it for. We're looking at the market, buying and selling. I believe that the evaluation methodology is a comparative one. We have a picture of our current. I'm receiving offers for our assets and also to buy assets. We have a great accuracy in the price of land. We had in our database, more than the majority being land in Brazil. We created intelligence in this area. If you ask me, "Are you conservative?" No, we're realistic.
We're a realistic company. We don't sell dreams, and we want to develop in a recurring way to the investors. André, just to supplement. The property, we have a possibility to opt between the cost and market value. In the past, when we began this discussion internally, this was a point that we considered to make this decision, especially because there's a great subjectivity in terms of how you price the soybean in the future. Today, what should we do internally or externally to understand if we need an impairment? If the value is lower than our cost, then we should recognize this loss. It's difficult. Normally, our portfolio includes farms that we bought at BRL 1,200, BRL 1,500 per hectare. The transformation costs BRL 2,500 on average, and there is no farm that is sold below this amount.
The best way to price recognize result is when we sell. An investor could question, we could distribute dividends. Of this result due to the variance in the price of land. We thought the best way would be to record the cost and recognize the gains, the profit when we sell. André mentioned all the farms were booked at in this way. Well, thank you, André, Gustavo, for your time. We had a little more than an hour and a half. The year is beginning. Very good audience. Thank you to all who participated, asked questions. We're making progress with more transparency, and it's important to have your questions, your feedback. I will pass the floor to André, and we want to close, and we will meet again in the next results. Thank you, Ana.
Thank you for the team, Daisy, Camilla, and thank you to all the participants. We have to thank this beautiful public, these people who trust in the company's management. Here we are committed. We have worked more and more on this, and I say once again, so we work on people, sustainability in the near term and long term. The company this year won a prize, one of the five best companies to work in agribusiness in our segment, midsize companies. This shows that we're on the right track, working with the right people, and with this engagement for consistent delivery of results. As Ana said, the year is beginning.
It seems that we will have a better climate than last year, especially in Paraguay, in the middle of Brazil, too. Sugarcane, with more rain, this will help the production of sugarcane.
Farmers or businessmen are always optimists, but we're realistic because we're always looking at processes, strategies and people working on these pillars all the time. This is our commitment, not only mine, but all the managers and also you who trust in us in managing your resources. Thank you very much. The questions we were not able to answer, please get in touch with Ana in investor relations, and we will answer them. If you want to talk to us, we're available. Thank you.