Good morning, ladies and gentlemen, and thank you for waiting. At this time, we would like to welcome everyone to SLC Agrícola, the third quarter of 2021 earnings conference call. Today we have with us Mr. Aurélio Pavinato, CEO, and Mr. Ivo Marcon Brum, CFO and Investor Relations Officer. We would like to inform you that this event is being recorded, and all participants will be in listen-only mode during the company's presentation. After the company's remarks are completed, there will be a question-and-answer session. At this time, further instructions will be given. Also, today's live webcast, both audio and in slideshow, may be accessed through SLC Agrícola website at ri.slcagricola.com.br in the investor relations sections by clicking on the banner webcast 3Q 2021. The following presentation is also available to download on the webcast platform.
The following information is available in thousands of Brazilian reais and in IFRS, except when otherwise indicated. Before proceeding, let me mention that forward-looking statements are based on the beliefs and assumptions of SLC Agrícola management and on information currently available to the company. They involve risks, uncertainties and assumptions because they are related to the future events and therefore depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions and other operating factors could also affect the future results of the company and could cause results to differ materially from those expressed in such forward-looking statements. Now, I'll turn the conference over to Mr. Aurélio Pavinato, CEO. You may proceed.
Good morning. We would like to thank you all for participating in the conference call to announce the results of the third quarter of 2021 for SLC Agrícola. This quarter was marked by the beginning of the control of the business management of Terra Santa Agro S.A. On July 1st of the year, with the completion of the merger of Terra Santa Agro S.A. shares, 2,516,000 new shares from SLC Agrícola common shares were issued in favor of Terra Santa shareholders. On October 29th, according to the material facts disclosed on that date, we finalized the final price adjustment agreement between SLC Agrícola and Terra Santa Propriedades Agrícolas, resulting in a payment in favor of SLC Agrícola of BRL 20 million.
This value is broken down as follow, BRL 12 million through the payment of finance advisory contracts, obligation contracts by Terra Santa with bank entities, and BRL 8 million paid in Brazilian currency. As we can see on slide three, the consideration transferred was BRL 192.8 million, comprising the fair value of the shares issued, the cash consideration arising from the right to use the lease, the change in assets and liabilities, and finally, at the present value of the tax credits. The value of goodwill generated in this transaction was BRL 47.3 million, arising from the ratio between the consideration transferred by SLC Agrícola versus the value of assets and liabilities acquired. On slide four, we also showed that some assets and liabilities were not assumed by SLC Agrícola.
Thus, surplus assets and liabilities provided for in the association agreement and other covenants will be carried out by the company and, upon settlement, will be received or collect from the former shareholders without burden or bonus on the part of the company. The amount of contingent assets and liabilities resulted in a net contingent liability of BRL 53.8 million. The integration of the processes, systems, and people is taking place gradually and in a very positive way, taking advantage of the best practice of both companies. The best combination is in line with our current strategy, pursuing the achievement of the asset-light growth pillar. We can move on to slide six, where I will now comment on the market outlook.
The third quarter of 2021 was marked by an increase in cotton prices on the New York Stock Exchange spot contract, where the price of fiber surpassed the BRL 1 per pound mark. The reduction of planted area in the American territory for the 2021, 2022 crop cycle and in Brazil in 2021 crop year were the main reasons for the variation in prices from the point of view of supply. Regarding the demand scenario, the growth of imports by China stands out, where it is estimated that in 2021 cycle, the imported volume reached approximately 13 million bales, the highest in the last six years. For 2021, 2022, the volume is also higher than the average of the last six years, with a volume of approximately 10.5 million bales.
The increase in global demand for fiber and scenario for reduced production in the main exporting countries are factors that have contributed to the global balance between supply and demand closing 2021, 2022 in a deficit condition of approximately 2.3 million bales, according to USDA estimates. In soybeans, during the third quarter of this year, the prices observed in Chicago, added to the premiums in Brazil and the exchange rate depreciation, allowed price in reais to reach levels higher than those observed in the past cycle. More recently, results in prices above BRL 170 per bag, according to CEPEA survey at the Paranaguá base, whose equivalent quotation would be $13.5 per bushel.
The sales volume of North American soybean has been an important support factor for the oilseed prices on the Chicago Stock Exchange, since the volume committed to China in the general total shows the normalization of the sales between United States and the Asian country. At the global level for the current 2021, 2022 cycle, the relationship between supply and demand should show a surplus of approximately 6 million tons, following the positive balance of 3.2 million tons in 2021 and - 18.5 million tons in 2019, 2020. However, the confirmation of La Niña could bring important climate fluctuations to the southern region of South America, especially Argentina, which could lead to price instability.
Corn prices in the CBOT spot contract and in the Brazilian domestic market continue to show price at levels above the historical average of recent years, maintaining part of the upward trajectory started in middle 2020. Throughout the third quarter of 2021, the scenario of firm demand, measured mainly by U.S. corn sales to China, continues to support the grain prices in Chicago. In the Brazilian scenario, where important second-crop corn-producing regions face adverse weather conditions for crop development, production in 2021 ends at approximately 87 million tons, 15% lower than in the previous cycle. In the world scenario, the difference between supply and demand should present a volume of 25.7 million tons of consumption higher than production, which is also an important factor to be monitored as a guide in the formation of future corn prices on the international market.
After this summary about the market overview, let's move on to slide eight, where we present the final yields for the 2021 harvest. We ended the 2021 harvest with good results. Operational efficiency deliveries that demonstrate our pursuit of distance from the national average, another strong pillar of our current strategy. In soybeans, productivity reached 3,970 kg per hectare, fourth consecutive year of record and 12.5% higher than the national average. Cotton from first and second crop harvest and with an average yield of 1,815 kg per hectare, 5.6% higher than national average. In corn, second harvest, we obtained 5,715 kg per hectare of productivity, 41% higher than the national average. The productivity realized was below the estimated potential due to the irregularity in the distribution of rain volumes throughout the months on March and April, mainly in the farms of South Mato Grosso.
On slide nine, we show the results of the independent land valuation for 2021 carried out by Deloitte. In August, the new valuation of SLC Agrícola's land portfolio was completed, which had a total value of BRL 6.9 billion, an increase of 75.2% compared to 2020. The average value of arable land is currently at BRL 35,700 per hectare, which brings our NAV to BRL 8.3 billion, which corresponds to a NAV per share of BRL 43.34 per share. Now, I'd like to turn the floor over to my colleague, Ivo Brum, CFO and Investor Relations Officer, for comments on the main financial indicators.
Good morning, everybody. Can we please move on to slide 11, where we bring you some highlights of our income statement for the third quarter of 2021. Before analyzing the numbers, we would like to point out that as we took over the management of Terra Santa Agro business in this quarter, the consolidated interim financial statements also include the result of Terra Santa Agro. To enable comparability between periods, data for third quarter 2020 and nine months 2020 reflect the combination of data released by SLC Agrícola and Terra Santa Agro in both periods. Our analysis were conducted in relation to the combined periods. Net revenue grew 2.4% in the third quarter 2021 and 13.3% in nine months 2021 compared to the same period of the previous year. Highlights, higher price invoiced in both periods.
It should be noted that this quarter we had the contribution of BRL 112 million in net revenue from Terra Santa. In the quarter, adjusted EBITDA was record, ending the period at BRL 330 million, an increase of 36%. The adjusted EBITDA margin was 34%, an increase of 7.8 percentage points compared to the third quarter 2020. The main variation in the quarter were the higher gross income from crops added to the measurement of the fair value of investment properties, partially offset by general and administrative expenses.
Adjusted EBITDA from Terra Santa operation in the quarter was BRL 17 million. In nine months 2021, we reached an important milestone for the nine-month period, surpassing for the first time BRL 1 billion, with the realization of BRL 1.1 billion in the adjusted EBITDA, an increase of 94% compared to nine months 2020. The adjusted EBITDA margin was 39%, with a growth of 12 percentage points.
[This relevant] advance in the adjusted EBITDA refers substantially to the increase in the gross income, reflecting higher invoice price for all crops and record productivity achieved for soybeans. It is important to highlight that the new valuation of SLC Agrícola's land portfolio, which represents a total value of BRL 6.9 billion, an increase of 75% compared 2020. Invest properties, areas leased to third party, had an appreciation of BRL 106 million, backing the third quarter result. We reached the net income of BRL 13 million in the third quarter 2021 and BRL 937 million in the nine months 2021. In the quarter, the net income from the Terra Santa operation was BRL 20 million. In both periods, with very robust growth and an increase in net margin of 18 percentage points in the quarter and 19 percentage points in the accumulated period of nine months.
The main factors that contribute for this variation were the increase in the gross revenue, the effect of bettering sales, the price invoiced, and the positive effect of the accounting dynamics for Biological Assets due to expectation of higher margin compared to the previous crop year. We can move on to slide 12, where we present the company's adjusted net debt. We ended the third quarter of 2021 at BRL 2.2 billion, an increase of BRL 1.5 billion compared to fourth quarter 2020. Net debt was mainly impacted by increase in the working capital needs, the investment in the acquisition of Terra Santa Agro, and the new lease agreement with Agrícola Xingu. The net debt EBITDA ratio is currently 1.4 x. On slide 13, I would like to emphasize two important events with board approval. On September 19th was approval to buy 2 million shares.
On November 10th was approval to submit the proposal to bonus shares of 10% ratio. The next days, we will have a shareholder meeting to analyze it. I will now return the floor to Pavinato, which will present perspective for the next crop.
Please, can go to slide 15. In September, we start crop year 2021, 2022 with the expectation of planting 668,000 hectares, a 44% growth compared to the previous crop year. This strong growth in planted area reflects the last two operations completed by the company, the business combination with Terra Santa Agro S.A. and the lease agreement with Agrícola Xingu. Planting is progressing very well within the ideal window, so that we currently have 82% of the planted area for soybean already planted. Short- cycle varieties are planting 100% in the best window for high production potential and enable the planting of second-crop areas of corn and cotton in the best window as well. So far, the crops are showing excellent development. In terms of yield on slide 16, we present our initial estimate for 2021, 2022 harvest.
I emphasize that our estimates are based on historical data and take into account a conservative base scenario. Regarding cost per hectare on slide 17, we can see an estimated increase of 16.1% compared to the previous crop year in reais term. The main facts that contribute to these increases are higher price for our main inputs, notably seeds and fertilizer, higher fuel and energy costs due to the price and tariff increases respectively, increase in leasing costs since the percentage of planting on leased land increased to 69% in the current crop versus 58% in the previous crop year, and also due to the increase in the value of the soybean bags in reais, which is the indexation of the contracts. These increases are naturally being offset by sale price increases, as we can see on the slides, where we present the hedge table for the next crop.
We advancing our hedge position for 2021, 2022 harvesting, reach the international price level that allow us to maintain excellent margin in 2022. Additionally, we have already evolved in the hedge for the 2022, 2023 harvest. Due to the purchase of some inputs, we have already purchased around 20% of the demand of chemicals and 70% of the demand of potash. For both products, the price we purchased were lower than the current price market, especially for potassium. Our strategy for purchasing the rest of the inputs is to wait for an adequate exchange ratio between the input prices and commodity prices, as there has recently been a strong increase in input prices. I emphasize that our hedge strategy is aimed to protecting and stabilizing the company's operating margins, and our track record validates the assertiveness of this policy, regardless of the short-term fluctuations in input and commodity prices.
SLC Agrícola S.A. a chieved strong growth in terms of planted area this harvest due to the incorporation of Terra Santa Agro and the lease agreement with Agrícola Xingu. Aimed to adapt the internal structure to support this new cycle, we are disclosing today communicate to the market with the new structure of the operation department. The operation department was divided into two departments, two officers. Seed Production and Supply Officer and Operational Officer. Officer Gustavo Macedo Lunardi remains in the Supply and Seed Production Officer , and the Operational Officer has been taken by Leonardo Celini. He used to be Regional Manager , Regional 2 until now, and from now on, he's our new Operational Officer. We announced today for the company and announced to the market this increment on our officer to support this expansion in terms of supply, seed production, and the production of our commodities.
Finally, on slide 20, we comment on some actions taken in terms of ESG. We are conducting a new materiality survey with our stakeholders, which will be used to review the topics of greatest interest and strategic relevance. That is, those that can influence decisions and actions of the organization and its stakeholders, reflecting significant economic, environmental, and social impacts inside and outside of the organization. Based on this, priority themes will be identified that will be presented and validated by the company's senior management and will support the construction in the 2021 integrated report. In view of the socioeconomic crisis that Brazil is facing due to the pandemic, this quarter, SLC Agrícola donated, through the SLC Institute, 108 tons of food that will contribute to improve the reality of thousands of Brazilians, with one of the institutions benefiting from the food bank is from Rio Grande do Sul.
In all, associations, entities, and families from more than 30 municipalities located in seven Brazilian states received food baskets. Thank you, and now we will open the call to the questions session.
Ladies and gentlemen, we will now initiate the question-and-answer session. If you would like to ask a question, please dial star nine. Thank you. This does conclude today's presentation. You may disconnect your line at this time, and have a nice day.