Model to formulate and evaluate environmental projects in dairy farms.

Abstract

The objective of this paper is to present an application in Excel. It was developed on excel spreadsheets to assess economic and financial convenience of the investments required to implement a corrective action plan for the management of effluents generated in the productive process of dairy farms, in order to improve or mitigate negative environmental impacts. The model allows determining the costs associated with mitigation measures and the incomes associated with the damages avoided. Both are included in a cash flow of the evaluated project. The benefit of the project is compared with the benefits obtained in the current situation of the company without a project applying the evaluation criteria to the incremental benefit: Net present value, internal rate of return and repayment period. The proposed model works to support the decision-making process, generating systematized and quality information based on data from real dairy farms.