Producer transforms idle area into environmental asset in Southern Minas Gerais

A rural producer from Pouso Alegre (MG) has reforested unproductive areas of his farm and started generating income through environmental compensation contracts. The case highlights the potential of Payment for Environmental Services (PES), but also reveals the limitations imposed by the lack of national regulation. According to tax lawyer Fernando Melo de Carvalho, the current scenario prevents millions of small producers from accessing the benefit, even though they are responsible for most of the preservation in the country. Data from Incra show that 93% of rural properties are less than 100 hectares, but still receive little incentive to conserve. Carvalho explains that Law No. 14,119/2021 created the PES to remunerate activities such as forest conservation, spring protection, and recovery of degraded areas. However, the absence of the National Registry for Payment for Environmental Services prevents the full application of the incentives provided, especially in contracts ...